Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

June 2019
Market Update
(all values as of 02.29.2024)

Stock Indices:

Dow Jones 38,996
S&P 500 5,096
Nasdaq 16,091

Bond Sector Yields:

2 Yr Treasury 4.64%
10 Yr Treasury 4.25%
10 Yr Municipal 2.53%
High Yield 7.63%

YTD Market Returns:

Dow Jones 3.47%
S&P 500 6.84%
Nasdaq 7.20%
MSCI-EAFE 2.23%
MSCI-Europe 1.23%
MSCI-Pacific 3.98%
MSCI-Emg Mkt -0.27%
 
US Agg Bond -1.68%
US Corp Bond -1.67%
US Gov’t Bond -1.59%

Commodity Prices:

Gold 2,051
Silver 22.87
Oil (WTI) 78.25

Currencies:

Dollar / Euro 1.08
Dollar / Pound 1.26
Yen / Dollar 150.63
Canadian /Dollar 0.73
 

Fund Overview

Equities rebounded strongly in June, as did the Ocean Park funds. Technology and consumer stocks were among the leaders but the rally was broad-based, as all sectors in the S&P 500 gained ground.  Although we trailed the major indices, we continue to outperform the HFRI Equity Hedge Index, which rose 3.19% for the month and is up 9.44% for the year to date through June.

During June, we increased positions in the autos and transportation, consumer discretionary and service, and technology sectors, and exited our positions in the SPY and QQQ ETFs.  We ended the month at about 98% net long, up from about 91% in May.

 

 

 

A schedule showing the performance of the Investors Fund is included below, along with our Asset Allocation Chart. Daily updates on our activity are available on our Results Line, at
310-281-8577, and current information is also maintained on our website at www.oceanparkcapital.com. To gain access to the site enter password opcap.

*These results are pro forma. Actual results for most investors will vary. See additional disclosures on page 4. Past performance does not guarantee future results.

 

 
Equity Overview - June 2019

Equity Overview

This was the best June for equities since 1955.  Stocks of every description rose– small, mid, and large cap; growth and value; every sector and industry–and the market recovered almost all the ground lost in May.  Analysts attributed the gains in large part to indications that the Fed is about to lower interest rates.

Uncharacteristically, while stocks were rising, gold also rose to its highest level in two years.  Since stocks and gold have historically been non-correlated (when one goes up, the other typically goes down), the likelihood is that one or the other is due for a correction.

 

 

 
Macro Overview - June 2019

Macro Overview

Economic data reported in June were mixed.  Retail sales and existing home sales were positive, but manufacturing and service indices declined as did the measure of new jobs added.

Trade tensions eased somewhat in June.  At the G-20 meeting in Osaka, the U.S. and China agreed that they would restart the stalled trade negotiations.  And, although there remains no clear path to a resolution, the U.S. has stated that there will be no new tariffs on China at this time.

Nonetheless, the trade war has already led to a slowdown in the global economy.  And the Fed has indicated concern that the trade war has negatively impacted the U.S. economy as well.  For that reason, the market is now pricing in at least two interest rate cuts of 0.25% each this year.

 

 

 

 
Additional Disclosures - June 2019

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets.  Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund.  The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.