The second half of the year began on a positive note with the S&P 500 rallying about 3% in July and is now up over 19% for the year.  At one-point last month the Dow Jones Industrial Average was up 13 consecutive days – the longest winning streak since 1987. (YCharts)

These returns have been driven by solid economic data (including better than expected inflation readings) and an optimism that the Fed’s hike last week could be the final one of this cycle.  This month we’re going to review three indicators from our dashboard that have been impacted by the recent strength in stocks:

Another six months have flown by as we reach the halfway mark of the year with strong stock market returns.  The S&P 500 is up almost 16% YTD, after rallying 6% in June.  (YCharts)

At the beginning of the year, we highlighted a number of areas we thought were important to watch in our annual outlook.  We’re going to revisit four of these themes and provide an update on each.

• Inflation:  For the second year in a row CPI (Consumer Price Index) may be the most closely watched data point.  The most recent reading dropped to 4%, the lowest rate in 2 years, and substantially lower than the peak of 9%.  If we see inflation continue to trend downward it would likely be a positive for markets.  (YCharts)

Estate planning is critical for efficiently transferring your money, property, and assets to your beneficiaries after you die. The reason people choose an estate plan is that it avoids probate. One thing to keep in mind about your estate plan is not to set it and forget it. As life continues to change, your estate plan should reflect those changes too.

Retirement planning is a constantly evolving process. Strategies that may have worked fine a few years ago may no longer be the optimal direction to continue.

Do you know the answer if your financial professional asks you what type of investor you are? While it may be challenging to classify yourself off the top of your head, knowing what type of investor you are might help you avoid making knee-jerk decisions that could cost you money.

One silver lining in the current market is that this could be a good time to convert assets from a traditional IRA to a Roth IRA. Converted assets are subject to federal income tax in the year of conversion, which might be a substantial tax bill. However, if assets in your traditional IRA have lost value, you will pay taxes on a lower asset base when you convert.

Those who receive an inheritance with the passing of a loved one are potentially given the gift of financial freedom if they choose to manage the wealth carefully. Did you know that only about one-third of adults have a prepared will, and about 40% with investable assets of $1 million or more never discuss their estate plans with their children?