Weekly Investment Update

Global equity markets advanced last week as Jerome Powell, Federal Reserve Chair, indicated that the Fed may begin tapering its monthly bond purchases in 2021 but that investors should not expect interest rate hikes in the near-term[1]. His comments came after the annual Jackson Hole symposium and investors seemed pleased by the message, as the S&P 500 (a proxy for large-cap US stocks) gained 0.9% on Friday. Powell did mention the delta variant, which has helped push Covid-19 hospitalizations in the US over 100,000 for the first time since January[2], as an issue the Fed will be watching as they weigh the timing of future decisions.

Interest in Bitcoin and other crypto currencies has spiked again as prices have jumped over the past month. The rebound comes after a mid-May sell-off that saw Bitcoin, Ethereum, and Litecoin all fall more than 50% from their previous highs. As always, we recommend that investors exercise caution when considering any highly volatile investment, as the timing of entry and exit prices can materially impact investor outcomes.

Line graph depicting Bitcoin Price % Change, Ethereum Price % Change, and Litecoin Price% Change from January 2021 to August 2021

Prices & Interest Rates

Representative Index Current Year-End 2020
Crude Oil (US WTI) $68.67 $48.52
Gold $1,818 $1,893
US Dollar 92.68 89.94
2 Year Treasury 0.22% 0.13%
10 Year Treasury 1.31% 0.93%
30 Year Treasury 1.91% 1.65%
Source: Morningstar, YCharts, and US Treasury as of August 29, 2021

Asset Class Returns

Category Representative Index YTD 2021 Full Year 2020
Global Equity MSCI All-Country World 15.3% 16.3%
Global Equity MSCI All-Country World ESG Leaders 16.6% 16.0%
US Large Cap Equity  S&P 500  21.2% 18.4%
US Large Cap Equity  Dow Jones Industrial Average 17.3% 9.7%
US Small Cap Equity  Russell 2000 16.0% 20.0%
Foreign Developed Equity MSCI EAFE 11.2% 7.8%
Emerging Market Equity MSCI Emerging Markets 0.0% 18.3%
US Fixed Income Bloomberg Barclays Municipal Bond 1.5% 5.2%
US Fixed Income Bloomberg Barclays US Agg Bond -0.7% 7.5%
Global Fixed Income Bloomberg Barclays Global Agg. Bond -2.4% 9.2%
Source: YCharts as of August 29, 2021

Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.   

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