Weekly Investment Update

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%[1]. 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.

Line graph depicting S&P 500 Total Return Level % Off High, MSCI ACWI Net Total Return Level % Off High, Russell 2000 Total Return Level % Off High, MSCI EAFE Net Total Return Level % Off High, and MSCI Emerging Markets Net Total Return Level % Off High from January 2021 to September 2021

Prices & Interest Rates

Representative Index Current Year-End 2020
Crude Oil (US WTI) $69.71 $48.52
Gold $1,787 $1,893
US Dollar 92.64 89.94
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

[1] 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.   

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