Please find the next blog in our monthly series that provides a snapshot of the markets and the state of the economy.
- Consumer sentiment had another precipitous drop in August, weighed down by the rapidly spreading Delta variant
- YoY Inflation remains elevated but monthly increases have moderated, suggesting inflation may have peaked
- Equity markets remained near all-time highs despite rising cases of the Delta variant of Covid
- Stocks continue to outperform bonds year-to-date
- Emerging markets equities rebounded in August
Asset Class Valuations
- Equities are more attractively valued than bonds
- Non-US equities are more attractively valued than US equities
- Equities, H.Y. bonds, R.E. provide an inflation hedge
New COVID Cases Per Million (7-Day Moving Average)
Cases of the Delta variant continued to rise across the country, a key driver of the recent drop in consumer sentiment.-
Key Risk Factors We Are Watching
- Coronavirus Delta Variant
- Fiscal Stimulus
- Consumer Behavior – Savings/Spending
- Financial Conditions; Fed Tapering
- China Policy Shifts
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