Investment Review - September 2021
- The major U.S. stock indices set new all-time highs in August. The Dow Jones Industrial Average increased just over 1%, the S&P 500 was up 3%, and the Nasdaq Composite advanced 4%. The S&P 500 has posted gains for seven consecutive months.
- As investors mull inflation and growth data, bond markets appear more certain of Federal Reserve policy. Investors demand extra yield for holding long-dated bonds such as the 30-year U.S. Treasury. The differential between 5-year and 30-year bonds is an indication of how investors expect policy to affect the long-term outlook. The 5-30 spread has held steady at 1.2 percentage points after falling from 1.4 percent after the June FOMC policy meeting. The lower spread indicates investors accept the Fed will gradually raise rates.
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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