Quarterly Market Update 6.30.2021
The U.S. stock market was up 8.37% in second quarter of 2021 and up 14.88% year to date. The U.S. bond market improved in the second quarter, up 1.75% for the quarter, but remains down -2.58% for the year.
The economy continues to surge as the re-opening continues. Volatility settled some in June as fears of an inflation spike subsided.
The see-saw battle between growth (technology, stay-at-home stocks) and value (cyclical, re-open stocks) continued and ended the quarter in favor of growth. All the major indexes hit new all-time records consistently throughout the last month of the quarter.
U.S. fixed income markets stabilized and improved in the second quarter. But the volatility could return if fears of inflation re-ignite.
In the short term the re-opening will continue which will drive stocks upwards. However, the re-opening will phase out and economic growth will return to normal levels. The return of economic growth to normal levels may create volatility in the stock market. But should help the bond market as long as inflation does not stay at current, elevated levels.
As always, a diversified portfolio is your best strategy for whatever the stock and bond markets deliver.
Please contact me with any questions.