2014 Q2 SUMMARY

U.S. stocks ended June and the second quarter higher as well. During this quarter vast majority of experts, anchors and analysts had huge concerns about the market is in bubble. Maybe, but I doubt that. If it is really a bubble that doesn’t mean will burst any time soon, remember all the market exuberance periods, when the market does 2-5% gains within one day. But recently the market seems not in exuberance. The market is just steadily gaining. The SP500 hasn’t closed up/down by more than 1% in the last 50 sessions. So there is not any euphoria at all.

This market does not discount for any kind of negative macro news. Anything below any 10% drop - we had couples this year - in an index is not a correction just a noise and consolidation by definition. All in all the bullish uptrend is not violated yet so we are expecting more gain in US, European and some benchmark indices further in this recent year.

Summary of Q2:

• The SP500′s 4.7% quarterly advance is the strongest Q2 since 2009
• SP500 recorded the fifth consecutive month of gaining
• Nasdaq closed at its highest level since April 2000
• SP500 made a 1.9% monthly rise in June
• DJIA rose quarterly 2.2%
• Nasdaq gained nearly 5% in Q2

On YTD the picture is more or less the same as Q2 numbers. The market is bullish not as strong as was last year, but reasonably long and is in a strong upside momentum. All indices YTD turned higher after the brutal sell off in January when Nasdaq hit the 10% drop.

This week will be shorter week due to the July 4th holiday on Friday.

The BFM Assets Team.