Weekly Investment Update

Most equity indexes retreated from near all-time highs last week, as concerns over inflation and the Covid Delta variant seemed to weigh on the investor mindset. While the S&P 500 (a proxy for large-cap US stocks) was down approximately one percent for the week, other parts of the market sold-off more significantly. Small-cap stocks, for example, lagged their larger peers, losing more than five percent for the week[1].

The energy sector, which roared back to life as the economy came back online as the vaccine rollout progressed, dropped nearly eight percent last week, as well. The sell-off is the result of news that a breakthrough in relations between Saudi Arabia and the United Arab Emirates improves the odds of OPEC increasing oil supply in the near future[2].

Line graph depicting Energy Select Sector SPDR ETF Total Return and S&P 500 Top 50 Total Return from January 2021 to July 2021

Prices & Interest Rates

Representative Index Current Year-End 2020
Crude Oil (US WTI) $71.17 $48.52
Gold $1,813 $1,893
US Dollar 92.71 89.94
2 Year Treasury 0.25% 0.13%
10 Year Treasury 1.31% 0.93%
30 Year Treasury 1.93% 1.65%
Source: Morningstar, YCharts, and US Treasury as of July 17, 2021

Asset Class Returns

Category Representative Index YTD 2021 Full Year 2020
Global Equity MSCI All-Country World 12.3% 16.3%
US Large Cap Equity  S&P 500  16.1% 18.4%
US Large Cap Equity  Dow Jones Industrial Average 14.5% 9.7%
US Small Cap Equity  Russell 2000 10.1% 20.0%
Foreign Developed Equity MSCI EAFE 8.8% 7.8%
Emerging Market Equity MSCI Emerging Markets 5.0% 18.3%
US Fixed Income Bloomberg Barclays Municipal Bond 1.8% 5.2%
US Fixed Income Bloomberg Barclays US Agg Bond -0.9% 7.5%
Global Fixed Income Bloomberg Barclays Global Agg. Bond -2.6% 9.2%
Source: YCharts as of July 17, 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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