“Proclaim Liberty Throughout All the Land Unto All the Inhabitants thereof.”

This little bundle of American joy is our sweet granddaughter, Charlotte, known to family and friends as ‘Charlie’. As you can see, she has a tight grip on that flag and rightfully so: That flag holds her future.

I cherish her optimism and feel a responsibility to do my part to see that her dreams – even those not yet dreamed – will come true.

Sometimes being an optimist is pretty hard work. We’re now at the half-way point of getting through 2020. A lot has been thrown at us already and I fear that as the November elections come around we may see yet more ugliness. However, I want you, my good friends, to know that our American spirit runs deep in all of us and we will find ways to work through all this.

One of my favorite Americans was Ronald Reagan and the thing I loved most about him was, indeed, his unfailing optimism. I reflect here on his 1986, July 4th, speech.

“…it’s worth remembering that all the celebration of this day is rooted in history. It’s recorded that shortly after the Declaration of Independence was signed in Philadelphia celebrations took place throughout the land, and many of the former Colonists — they were just starting to call themselves Americans — set off cannons and marched in fife and drum parades.

What a contrast with the sober scene that had taken place a short time earlier in Independence Hall. Fifty-six men came forward to sign the parchment. It was noted at the time that they pledged their lives, their fortunes, and their sacred honors. And that was more than rhetoric; each of those men knew the penalty for high treason to the Crown. “We must all hang together,” Benjamin Franklin said, “or, assuredly, we will all hang separately.” And John Hancock, it is said, wrote his signature in large script so King George could see it without his spectacles. They were brave. They stayed brave through all the bloodshed of the coming years. Their courage created a nation built on a universal claim to human dignity, on the proposition that every man, woman, and child had a right to a future of freedom.

For just a moment, let us listen to the words again: “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the pursuit of Happiness.” Last night when we rededicated Miss Liberty and relit her torch, we reflected on all the millions who came here in search of the dream of freedom inaugurated in Independence Hall. We reflected, too, on their courage in coming great distances and settling in a foreign land and then passing on to their children and their children’s children the hope symbolized in this statue here just behind us: the hope that is America. It is a hope that someday every people and every nation of the world will know the blessings of liberty.”

So, enjoy your Fourth, and let freedom ring!

Ron’s Market Minute — E letter- Volatility continues

Markets continue to have outsized moves, and we continue to see VIX measures (volatility) in the low 30’s.  That means it would be reasonable to expect outsized moves in either direction to continue. Remember that we would look for VIX readings in the low teens in a healthy market. Technology, healthcare, and precious metals are the leaders. To our surprise, we are also seeing strength rivaling the US markets in parts of Europe and Eastern Europe especially. Add to that, one of the strongest areas so far this year is the small-cap stocks in China. As the strength outside of the US grows, we continue to add it in small bites to our client portfolios.

Junk bonds (high yield) are still pointed upwards and this is generally a positive indicator, so we keep an eye on that. Some of the bond markets indicators are showing less volatility, but that might be a result of the FED propping up the bond market.

So, people ask us what we think is in store NEXT for the stock markets. The answer is: the short-term movements are neutral to up, the intermediate movements are up, and the long-term is pretty uncertain. While no one really knows what is coming next, we will continue to monitor the key indicators, and expect to be able to react appropriately as the future becomes less murky.

Ronald P. Denk, CFP®
Investment Advisor
Denk Strategic Wealth Partners
10000 N. 31st Avenue, Suite C-262
Phoenix, AZ 85051
Phone (602) 252-8700
Fax (602) 252-8701
Toll-Free (877) The-Denk

This weekly article reflects news, commentary, opinions, viewpoints, analyses and other information developed by Denk Strategic Wealth Partners and/or select but unaffiliated third parties. DSWP provides Market Information for illustrative and informational purposes only. If you wish to receive this weekly commentary by email please contact us at 602-252-8700 or by e-mail at lindaw[@]denkinvest.com. If you are receiving this commentary via email and would prefer not to please let us know either by email or phone.

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