Global equity markets advanced last week as Jerome Powell, Federal Reserve Chair, indicated that the Fed may begin tapering its monthly bond purchases in 2021 but that investors should not expect interest rate hikes in the near-term[1]. His comments came after the annual Jackson Hole symposium and investors seemed pleased by the message, as the S&P 500 (a proxy for large-cap US stocks) gained 0.9% on Friday. Powell did mention the delta variant, which has helped push Covid-19 hospitalizations in the US over 100,000 for the first time since January[2], as an issue the Fed will be watching as they weigh the timing of future decisions.
Interest in Bitcoin and other crypto currencies has spiked again as prices have jumped over the past month. The rebound comes after a mid-May sell-off that saw Bitcoin, Ethereum, and Litecoin all fall more than 50% from their previous highs. As always, we recommend that investors exercise caution when considering any highly volatile investment, as the timing of entry and exit prices can materially impact investor outcomes.
Prices & Interest Rates
| Representative Index | Current | Year-End 2020 |
|---|---|---|
| Crude Oil (US WTI) | $68.67 | $48.52 |
| Gold | $1,818 | $1,893 |
| US Dollar | 92.62 | 89.94 |
| 2 Year Treasury | 0.22% | 0.13% |
| 10 Year Treasury | 1.31% | 0.93% |
| 30 Year Treasury | 1.91% | 1.65% |
| Source: Morningstar, YCharts, and US Treasury as of August 29, 2021 |
Asset Class Returns
| Category | Representative Index | YTD 2021 | Full Year 2020 |
|---|---|---|---|
| Global Equity | MSCI All-Country World | 15.3% | 16.3% |
| Global Equity | MSCI All-Country World ESG Leaders | 16.6% | 16.0% |
| US Large Cap Equity | S&P 500 | 21.2% | 18.4% |
| US Large Cap Equity | Dow Jones Industrial Average | 17.3% | 9.7% |
| US Small Cap Equity | Russell 2000 | 16.0% | 20.0% |
| Foreign Developed Equity | MSCI EAFE | 11.2% | 7.8% |
| Emerging Market Equity | MSCI Emerging Markets | 0.0% | 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 | -2.4% | 9.2% |
| Source: YCharts as of August 29, 2021 | |||
[1] Jerome Powell's Jackson Hole Speech: Says Tapering Could Begin This Year - Bloomberg
[2] Stock Market Today: Dow, S&P Live Updates for Aug. 20, 2021 - Bloomberg
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