Investment Review - July 2021
- The S&P 500 increased 2.2% in June, bringing its year-to-date gain to 14.4%. The Dow Jones Industrial Average was down fractionally for the month but up 12.7% year-to-date. The Nasdaq Composite advanced 5.5% in June, bringing its year-to-date gain to 12.5%. Falling long-term interest rates in June supported the shares of growth companies whose future earnings and cash flows are more highly valued at present using a lower discount rate.
- Non-US stocks were flat to down in June as variants of Covid-19 spread, threatening the reopening of economies globally. The MSCI EAFE index of developed countries was down -1.5% while the MSCI Emerging Markets index was essentially flat. The U.S. dollar rose 2.7%, consistent with the Fed’s recent shift to consider talking about tapering its bond buying program; a move that would precede any consideration of interest rate hikes.
Sources: Bloomberg, FACTSET, WSJ, U.S. BEA, U.S. BLS, Federal Reserve, Instit. For Supply Mgmt, ISI, IBD, Yardeni Research
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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