Financial companies are finally starting to perform, Energy is still volatile while Tech takes a breather…

Markets were mixed during the holiday-shortened week; the Financials sector outperformed as investors responded to rising bond yields. Energy stocks, though, remained volatile. Crude oil prices declined even as inventories in the U.S. fell to the lowest levels since January; continuing production increases in the U.S. and overseas are reportedly prompting OPEC to consider imposing production caps on previously-exempted Nigeria and Libya. Central banks were in focus as policymakers acknowledge improvements in the global economy; the European Central Bank and the Bank of England each indicated they may consider easing monetary stimulus. The shift corresponds with the release of minutes from the Federal Reserve’s June meeting which pointed to further interest rate hikes despite the recent softening in inflation. Economic data supported expectations for improving global economic growth. In the U.S., the ISM Manufacturing Index for June reached its highest level since August 2014; fifteen of the eighteen industries surveyed reported growth. The ISM non-manufacturing index similarly pointed to improving conditions, with sixteen of seventeen service industries reporting growth. Meanwhile, Europe’s economic recovery appears well underway. Industrial production increased for the fifth consecutive month in Germany, and also expanded in both France and Spain.

Source: Pacific Global Investment Management Company

Chart reflects price changes, not total return. Because it does not include dividends or splits, it should not be used to benchmark performance of specific investments.



Market Week

Looking ahead, the global central banks are more likely to raise interest rates or otherwise tighten monetary policy as economies improve. The most recent cycle of rising rates in the U.S. occurred from May 2004 to June 2006; many investors, with limited recollection of this period, may view a series of interest rate increases with uncertainty. Historically, rising rate cycles, which typically last between two to four years, correspond with improving economic conditions; they are often accompanied by bull markets. The current cycle began in December 2015 when the Fed Funds rate rose from 0.25% to 0.5%. We believe that, given its low starting point, the slow pace of rate hikes since then, and accelerating economic growth trends around the world, the cycle may continue for an extended duration; therefore, we remain optimistic regarding the longer-term outlook for stocks. The upcoming second quarter earnings period may provide a catalyst. Reports next week from JPMorgan Chase, Wells Fargo, Delta Air Lines, and PepsiCo will help determine the market’s near-term direction as companies provide updated outlooks for the final six months of the year.



Last Week's Headlines

  1. The job situation rebounded in a big way in June as 222,000 new jobs were added during the month, well above the 152,000 (revised) new jobs added in May. The unemployment rate inched up 0.1 percentage point to 4.4%. Noteworthy job gains occurred in health care, social assistance, financial activities, and mining. Since January, the unemployment rate and the number of unemployed are down by 0.4 percentage point and 658,000, respectively. The average workweek for all employees on private nonfarm payrolls rose by 0.1 hour to 34.5 hours in June. For the month, average hourly earnings for all employees on private nonfarm payrolls rose by $0.04 to $26.25. Over the year, average hourly earnings have risen by $0.63, or 2.5%.
  2. The IHS Markit final US Manufacturing Purchasing Managers' Index™ (PMI™) indicated that manufacturing slowed in June. According to the report, manufacturing output, new orders, and employment weakened compared to May. Price inflation was the slowest since late 2016.
  3. On the other hand, the Manufacturing ISM® Report On Business® suggested that the manufacturing sector expanded in June. The overall purchasing managers' index registered 57.8%, an increase of 2.9 percentage points over the May reading. New orders, production, and employment climbed in June. However, inventories and prices decreased for the month. While the Markit and ISM® reports offer conflicting information, historically, the Markit PMI™ tends to align more closely with government data.
  4. The non-manufacturing, or services, sector expanded in June, according to the latest Non-Manufacturing ISM® Report On Business®. Non-manufacturing industries include agriculture; accommodation and food services; transportation; mining; utilities; real estate; finance and insurance. The June non-manufacturing index registered 57.4%, 0.5 percentage point higher than the May reading. Expansion in the non-manufacturing sector occurred in business activity, new orders, and prices. Employment grew in the non-manufacturing sector, but at a slower pace compared to May.
  5. The international trade deficit shrunk in May, according to the Census Bureau. The goods and services deficit was $46.5 billion in May, down $1.1 billion from $47.6 billion in April, revised. May exports were $192.0 billion, $0.9 billion more than April exports. May imports were $238.5 billion, $0.2 billion less than April imports. Year-to-date, the trade deficit increased $27.0 billion, or 13.1%, from the same period in 2016. Exports increased $54.3 billion, or 6.0%. Imports increased $81.4 billion, or 7.3%.
  6. In the week ended July 1, the advance figure for seasonally adjusted initial claims for unemployment insurance was 248,000, an increase of 4,000 from the previous week's unrevised level. The advance seasonally adjusted insured unemployment rate remained 1.4% for the week ended June 24, unchanged from the previous week's unrevised rate. During the week ended June 24, there were 1,956,000 receiving unemployment insurance benefits, an increase of 11,000 from the previous week's revised level. The previous week's level was revised down by 3,000 from 1,948,000 to 1,945,000.



Eye on the Week Ahead

Trading is expected to pick up following the holiday-shortened week. Last week's favorable employment report should quell investors' concerns about a slowdown in job growth. This week, reports focusing on consumer spending and inflationary trends are out with the Producer Price Index, retail sales report, and The Consumer Price Index.



Brian Amidei, along with Partners Joseph Romano and Brett D'Orlando have also been named *2014, 2015, 2016, 2017, 2018 Five Star Wealth Managers!

Awards and recognitions by unaffiliated rating services, companies, and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Fortem is engaged, or continues to be engaged, to provide investment advisory services; nor should they be construed as a current or past endorsement of Fortem or its representatives by any of its clients. Rankings published by magazines and others are generally based on information prepared and/or submitted by the recognized advisor. Awards may not be indicative of one client’s experience or of the Firm’s future performance. Neither Fortem nor the recognized advisor has paid a fee for inclusion on a list, nor purchased any additional material from the award provider. The criteria for each award is listed below:

Five Star Professional Disclosure:
The Five Star Wealth Manager award is based on 10 eligibility and evaluation criteria: 1) Credentialed as an investment advisory representative (IAR) or a registered investment advisor; 2) Actively employed as a credentialed professional in the financial services industry for a minimum of five years; 3) Favorable regulatory and complaint history review; 4) Fulfilled their firm review based on internal firm standards; 5) Accepting new clients; 6) One-year client retention rate; 7) Five-year client retention rate; 8) Non-institutionalized discretionary and/or non-discretionary client assets administered; 9) Number of client households served; and 10) Educational and professional designations. The inclusion of a wealth manager on the Five Star Wealth Manager list should not be construed as an endorsement of the wealth manager by Five Star Professional or the magazine. The award methodology does not evaluate the quality of services provided. Additional information about this award is available at:
Fortem Financial 2016. All rights reserved.

Data Sources: News items are based on reports from multiple commonly available international news sources (i.e. wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. Market Data: Based on reported data in WSJ Market Data Center (indexes); U.S. Treasury (Treasury Yields); U.S. Energy Information Administration/ Market Data (oil spot price, WTI Cushing, OK); (spot gold/silver); Oanda/FX Street (currency exchange rates). All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness.

Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. The opinions expressed are solely those of the author, and do not represent those of Fortem Financial, LLC or any of its affiliates. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful. Forward looking statements are based on current expectations and assumptions, the economy, and future conditions. As such, forward-looking statements are subject to inherent uncertainty, risks, and changes in circumstance that are difficult to predict. Actual results may differ materially from the anticipated outcomes. Carefully consider investment objectives, risk factors and charges and expenses before investing. Fortem Financial is a registered investment adviser with the SEC. Advisory services are offered through Fortem Financial.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighed index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indices listed are unmanaged and are not available for direct investment.

Fortem Financial

Recent Posts


Fortem Financial Group, LLC, has adopted this policy with recognition that protecting the privacy and security of the non-public personal information we obtain about our customers is an important responsibility.

All financial companies choose how they share your non-public personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your non-public personal information. Even when you are no longer our customer, we will only share your non-public personal information as described in this notice. So, please read this notice carefully to understand what we do.

The types of non-public personal information we collect and share depend on the product or service you have with us. This information can include items such as your Social Security number and income, your account balances and transaction history, and your investment experience and account transactions.

We collect your non-public personal information in a variety of ways. For example, we obtain your non-public personal information when you open an account or give us your income information, tell us about your portfolio or deposit money, or enter into an investment advisory contract. We also collect your non-public personal information from other companies. For example, from the custodians who hold your account assets.

All financial companies need to share customer’s non-public personal information to run their everyday business. Below, we describe the reasons we can share your non-public personal information and whether you can limit this sharing.

We share your non-public personal information for our everyday business purposes such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, report to credit bureaus, to protect the confidentiality or security of your records, or as permitted by law. We may also share your non-public personal information for our own firm’s marketing purposes; so that we can offer our products and services to you.

Federal law gives you the right to limit only sharing non-public personal information about your credit worthiness for our affiliates’ everyday business purposes; sharing non-public personal information about you with our affiliates to market to you; and sharing non-public personal information with non-affiliates to market to you.

We don’t share non-public personal information about your creditworthiness with our affiliates for their everyday business purposes. We don’t share your non-public personal information with our affiliates to market to you. We don’t share your non-public personal information with non-affiliates to market to you. We also don’t share your non-public personal information for joint marketing with other financial companies. State laws and individual companies may give you additional rights to limit sharing.

We share non-public personal information with our parent company affiliate, Focus Financial Partners, Inc, for its internal and external auditing purposes. We also share your non-public personal information with a non-affiliate for the purpose of aggregating it and providing summary information based on this data to our parent company, Focus Financial Partners, Inc.

To protect your non-public personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

Our policy about obtaining and disclosing non-public personal information may change from time to time. We will provide you notice of any material change to this policy before we implement the change.

If you have questions please call us at 760-206-8500 or go to our website at


Fortem Financial Group, LLC ("Fortem Financial" or the "Firm") is a federally registered investment adviser with offices in California and Arizona. Fortem Financial and its representatives are in compliance with the current registration and notice filing requirements imposed upon federally registered investment advisers by those states in which Fortem Financial maintains clients. Fortem Financial may only transact business in those states in which it is notice filed, or qualifies for an exemption or exclusion from notice filing requirements.

This website is limited to the dissemination of general information regarding the Firm's investment advisory services offered to U.S. residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the publication of Fortem Financial' website on the Internet should not be construed by any consumer and/or prospective client as a solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment, tax or legal advice. Furthermore, the information resulting from the use of any tools or other information on this website should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from Fortem Financial. Any subsequent direct communication from Fortem Financial with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. Fortem Financial does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to this website or incorporated herein, and takes no responsibility therefore. All such information is provided for convenience purposes only and all users thereof should be guided accordingly.

All statements and opinions included on this website are subject to change as economic and market conditions dictate, and do not necessarily represent the views of Fortem Financial or any of their respective affiliates. Past performance may not be indicative of future results and there can be no assurance that any views, outlooks, projections or forward-looking statements will come to pass. Investing involves risk, including the potential loss of principal, and the profitability of any particular investment strategy or product cannot be guaranteed.

Any rating referenced herein may not be representative of any one client's experience. Further, the Firm's receipt of any rating is not indicative of the Firm's future performance. The Charles E. Merrill Circle of Excellence award is granted by Merrill Lynch for outstanding client service and satisfaction. The award is granted based on annual criteria established by Merrill Lynch for its top decile advisors. The Barron's Top 1,200 Financial Advisors rating of the top financial advisors in the United States is based on data provided by participating firms. The following factors are included in the rankings: assets under management, revenue produced for the firm, regulatory record, quality of practice and philanthropic work. Investment performance is not an explicit component. The Palm Springs Life's "40 Under 40" Rising Young Professionals to Watch in the Coachella Valley is based upon nominations from the local business community and selected by the staff of Palm Springs Life.

For information pertaining to the registration status of Fortem Financial, please refer to the Investment Adviser Public Disclosure website, operated by the U.S. Securities and Exchange Commission, at, which contains the most recent versions of the Firm's Form ADV disclosure documents.