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August 2021 - Market Flash

Another month, another all-time high for the S&P 500, an achievement that has become common place for the index for much of 2021. The benchmark index ended August with a gain of 3.04%. It is now higher by more than 21.5% on the year and trades at 37 times 10-year earnings, more than twice its historical average. Non-U.S. equities also turned in a good showing for August, with the MSCI EAFE index gaining 1.76%, while the MSCI Emerging Markets index advanced by 2.62%, all despite the dollar hitting its intra-year high mid-month.

July 2021 - Market Flash

U.S. equity markets ended July just a few points shy of their all-time highs, despite continued uncertainty around the pace of future inflation and renewed fears over COVID-19, as the delta variant spiked U.S. infections to their highest levels in months. These concerns manifested themselves in U.S. bond markets in the form of lower interest rates, with the yield on the 10-year treasury note sinking below 1.20% intra-month. This benefitted U.S. investment grade bond investors who experienced their best monthly return of 2021, gaining 1.12% in July.

June 2021 - Market Flash

Interest rates continued to be a dominant headline in Q2, as the yield on the 10-year treasury pulled a near 180 degree reversal from earlier in the year, declining by more than 25 bps. This came in stark contrast to 2021’s first quarter, where looming inflation concerns caused interest rates to spike by more than 80 bps. This resulted in, not only, a reversal in performance for fixed income assets, but a meaningful change in leadership away from lower duration* and more economically sensitive value stocks toward higher duration* growth names.

May 2021 - Market Flash

Most global equity and fixed income markets ended May in positive territory, despite investors wrestling with concerns over inflation. More precisely, the question on the minds of many was, and continues to be, whether or not the recent spike in consumer prices will be transitory (as the Fed predicts) or a longer-term trend. This resulted in a choppy month of trading for U.S. large cap stocks, which ended the month higher by 70 bps. International equities fared somewhat better, as improving growth expectations and a weaker dollar pushed developed non-U.S. stock prices higher by 3.59%.