Weekly Investment Update

The stock market bounced back last week, with many equity indexes recouping what was lost the previous week when the Federal Reserve messaging left investors rattled. The S&P 500 (a proxy for US large cap stocks) advanced 2.8% for the week while the MSCI ACWI (a proxy for large and mid-cap global stocks) was up 2.3%.

Some of the good news driving markets came on Thursday as a bipartisan group of Senators agreed to a $579 billion dollar infrastructure deal[1]. The proposed agreement has been negotiated for weeks with the White House and focuses on overhauling aging roads, bridges, and rails. In addition, there are allocations for electric vehicle and broadband infrastructure included, as well.

Chart depicting the items and amounts for key parts of infrastructure deal between White House, group of senators

Whether the bill is passes is far from certain. Democrats also indicated that they will be seeking a “human infrastructure” measure through the budget reconciliation process and President Biden said that he will only sign the two bills in tandem. Democrats’ attempt to go it alone on that initiative has drawn criticism from Republican leadership and it has the potential to undermine the bipartisan work on the infrastructure bill. While only time will tell if the two sides can find common ground, investors this week seemed optimistic.

Prices & Interest Rates

Representative Index Current Year-End 2020
Crude Oil (US WTI) $74.00 $48.52
Gold $1,782 $1,893
US Dollar 91.91 89.94
2 Year Treasury 0.28% 0.13%
10 Year Treasury 1.54% 0.93%
30 Year Treasury 2.16% 1.65%
Source: Morningstar, YCharts, and US Treasury as of June 26, 2021

Asset Class Returns

Category Representative Index YTD 2021 Full Year 2020
Global Equity MSCI All-Country World 12.6% 16.3%
US Large Cap Equity  S&P 500  14.8% 18.4%
US Large Cap Equity  Dow Jones Industrial Average 13.6% 9.7%
US Small Cap Equity  Russell 2000 18.7% 20.0%
Foreign Developed Equity MSCI EAFE 10.6% 7.8%
Emerging Market Equity MSCI Emerging Markets 7.8% 18.3%
US Fixed Income Bloomberg Barclays Municipal Bond 0.9% 5.2%
US Fixed Income Bloomberg Barclays US Agg Bond -2.0% 7.5%
Global Fixed Income Bloomberg Barclays Global Agg. Bond -3.2% 9.2%
Source: YCharts as of June 26, 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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