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Yesterday was the epitome of the “Dog days of Summer.”   Markets were eerily quiet, matching the 28 consecutive days of lack of volatility, defined as a move less than 1% in either direction, the longest period in over 2 years according to Bloomberg.

Is this suggesting that the markets are incredibly efficient or does it suggest all complacent about tomorrow’s future?

The release of the Minutes of the July FOMC meeting was largely a nonevent and offered little clarity. The Committee was split last month on whether the job market would continue to strengthen as saw little risk of a marked pickup in inflation.   The FOMC would wait for more data before a rate move.

I would like to digress for a moment and reflect upon all what is good in society in an era where all appear to be eviscerating one other with impugning vitriol.

Two nights ago in a women’s preliminary 5,000 meter race, two runners fell; USA’s Abbey D Agonstino and New Zealand’s Nikki Hamblin.  Both helped each other up from their fall and supported each other to the finish with D Agonstino suffering a season ending injury.  They finished last by a gargantuan amount.

There was no vitriol, accusations or victimizing comments but only two athletes who have spent their entire lives training for The Event that 99.999999999% of society only dream about helping  and supporting each other to finish even as their lifelong dream was shattered in an instant.

One famous historian once commented “Few will remember what happened here.” In my view this selfishness act will be remembered as one of the greatest sporting events in history. It epitomizes all what is good about sports and human nature and reinforces my optimistic attitude that there is indeed hope for tomorrow.

What will happen today?

Last night the foreign markets were up.  London was up 0.06%, Paris up 0.18%, and Frankfurt up 0.48%.  China was down 0.17%, Japan down 1.55% and Hang Sang up 0.98%.

The Dow should open flat as the Dog Days of Summer are continuing.  Oil is higher as the dollar is weakening, the result of the Fed Minutes which are now being interpreted that a hike may not be likely this year until there is a consensus outlook for growth, hiring and inflation. The 10-year is unchanged at 1.55%.

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Ken Engelke

Chief Economic Strategist Managing Director

The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. This material is being provided for informational purposes only. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. If you would like to unsubscribe from this e-mail distribution, please reply to this e-mail and indicate that you wish to unsubscribe in your response.