I dropped my phone the other day, severely cracking its face. It still worked, but I felt like I was getting slivers of glass in my finger every time I used it, so I took it in for repair. The fix worked fine in the short term, but last night, the phone just died. Nothing.

Both domestic and international markets had a strong month of July. Improving fundamentals, including job growth and consumer spending, helped boost investor confidence. Still, as I discuss in this month's Market Thoughts video, economic growth in the first half of the year was disappointing, mainly due to lower levels of spending in the business sector.

One of the most unusual aspects of this presidential campaign is how both parties have lined up in opposition to free trade. No surprise there from the Democrats, who have substantial interest groups that have always been anti-free trade, but it’s a complete reversal for the Republicans.

You have to figure that when both parties agree on something, government action becomes significantly more likely. And that means we as investors should start thinking about what protectionism means for us.

Last week’s data showed that, although consumers continue to work and spend, business remains a weak point for the economy. Consumer news continued to surprise to the upside, but weak durable goods orders suggested that the industrial sector hasn’t stabilized yet. Lackluster business activity also led to a substantial disappointment in overall economic growth for the first half of the year.

Writing my last few posts, about the real possibility of lower returns over the next few years, I got to thinking about how financial advisors add value—and how a skilled advisor can really help investors advance toward their financial goals.

The past two days, we’ve considered the likelihood that future returns for bonds and stocks will be disappointing.

Now, we get to the punch line: what does this mean for our own investments? And is there anything we can do about it?

Yesterday we talked about future bond returns, noting that while bonds have done very well over the past several decades, current conditions suggest their returns over the next 10 years could be significantly lower. Today, we’ll focus on stocks, making the same distinction between returns from income and returns from capital gains.

You’re probably familiar with the standard investment disclaimer “Past performance is no guarantee of future results.” In other words, just because something worked in the past is no reason to assume it will work in the future. This is true: asset classes, in particular, tend to outperform and underperform in regular cycles.

Last week’s data came in above expectations, marking the fourth straight week of good news on the economy. Housing starts and sales grew and the industry remained confident, despite some signs of stabilization in the sector.

It’s been almost a year since I last wrote about investment bubbles. Although there have been ample grounds for discussing the topic, I suspect that other events have seemed more pressing.