Global equity markets retreated last week, as the S&P 500 (a proxy for large-cap US stocks) lost 1.7% and the MSCI ACWI (a proxy for global stocks) dropped 1.2%. Concern about the Covid-19 delta variant and its impact on the economic recovery seemed to be weighing on investors’ minds.
While it was a rough week for risk assets, it is important to remember just how far equity markets have risen in 2021. The S&P 500 is up nearly 20% year-to-date and the MSCI ACWI index isn’t far behind (up 15.4%). In fact, most major equity indexes remain within striking distance of their all-time highs (see chart below). Even emerging markets, which has lagged most other equity asset classes this year, is only about 8% off of its highest level.
Prices & Interest Rates
|Representative Index||Current||Year-End 2020|
|Crude Oil (US WTI)||$69.71||$48.52|
|2 Year Treasury||0.23%||0.13%|
|10 Year Treasury||1.35%||0.93%|
|30 Year Treasury||1.94%||1.65%|
|Source: Morningstar, YCharts, and US Treasury as of September 11, 2021|
Asset Class Returns
|Category||Representative Index||YTD 2021||Full Year 2020|
|Global Equity||MSCI All-Country World||15.4%||16.3%|
|Global Equity||MSCI All-Country World ESG Leaders||16.6%||16.0%|
|US Large Cap Equity||S&P 500||19.9%||18.4%|
|US Large Cap Equity||Dow Jones Industrial Average||14.6%||9.7%|
|US Small Cap Equity||Russell 2000||13.5%||20.0%|
|Foreign Developed Equity||MSCI EAFE||12.9%||7.8%|
|Emerging Market Equity||MSCI Emerging Markets||2.9%||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||-2.3%||9.2%|
|Source: YCharts as of September 11, 2021|
 Source: YCharts
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.