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July 1, 2019

Dear Client: Returns for the major stock indices for 2019, and the current bond and money market yields are as follows: Index YTD 2019 Dow Jones Industrial Average     15.28% S&P 500     18.54% Fixed Income Yields 1 year 5 year 10 year 30 year Municipals 1.28% 1.34% 1.62% 2.40% US Treasuries 1.93% 1.76% 2.01% 2.53% Fidelity Government Cash Reserves Money Market Fund  2.07% Happy 4th of July!  As we celebrate the birth of our nation, we would like to reflect on the incredible first half of 2019 in the equity markets.  We just recorded the best June in the stock market since 1955 and are up over 18% year to date.  We again endured volatility as the month of May was down 6.35% alone for the S&P 500, reminding us that markets do not go straight up.  By the end of June, the markets fully recovered all of May’s decline.  Though we are never comfortable over-emphasizing short-term markets, we believe it is healthy to reflect on the values of resilience, discipline and the grinding faith that markets will ultimately appreciate over time for inherent reasons.  We also take some solace knowing the U.S. equity markets have rallied back to new highs after every decline. With the above optimism in mind, we are always concerned about the future and as is said repeatedly in this business: past performance is no guarantee of future results.  We have written multiple times about our concerns for attractive fixed income options due to falling interest rates and rising bond prices (remember the inverse correlation: as bond prices rise, interest rates fall).  In our...