Economic Market Update: July 16, 2021

How did markets fare in the second quarter? Join us as we review the previous quarter in the stock and bond markets, which saw a shift in leadership both across and within asset classes, and take stock of where investors stand after the first six months of the year.

Key Takeaways:

• The S&P 500 continued to hit new highs over the course of Q2, leading to the second-best start to a calendar year for the index this century.
• Returns were strong across nearly every asset class.
• Stock returns were solid across styles and market sectors, with only Utilities finishing the quarter in the red.
• Fixed income markets stabilized during the quarter, clawing back some of the losses experienced in Q1, which was one of the worst quarters for bond investors in history.
• Style, sector, and fixed income leadership began to shift in Q2, an indication that our base case of an early transition to a mid-cycle environment remains likely.