---
title: Weekly Investment Update October 18, 2021
description: Equity markets surged higher last week as earnings season got off to a great start.
---

[News & Insights ](https://financial.oneascent.com/blog)

# [Weekly Investment Update October 18, 2021](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021)

 Written by [OneAscent](https://financial.oneascent.com/blog/author/oneascent) | Oct 18, 2021 8:47:00 PM

Equity markets surged higher last week as earnings season got off to a great start. Several large banks reported strong earnings, which helped push equity markets higher. Goldman Sachs reported that their year-to-date revenue in 2021 is already the highest annual revenue recorded in firm history, and there is still a quarter of the year left[[1]](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021?hs_amp=true#_ftn1). The S&P 500 (a proxy for large-cap US stocks) was up 1.8% for the week and the MSCI ACWI index (a proxy for global large-cap stocks) jumped 2.2%[[2]](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021?hs_amp=true#_ftn2).

An important footnote to the strong bank earnings reports last week was the broad agreement by bank leadership that inflation, and wage inflation in particular, remains a concern. Goldman Sachs CEO David Solomon commented, “there’s real wage inflation across all aspects of the economy right now"[[3]](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021?hs_amp=true#_ftn3).

As one can see below, the US Consumer Price Index, a commonly used gauge of inflation, has risen to levels not seen in more than a decade. The Federal Reserve’s stance that inflation will be short-lived is being called into question more often recently, especially in areas like wage inflation.

Prices & Interest Rates

| Representative Index | Current | Year-End 2020 |
| --- | --- | --- |
| Crude Oil (US WTI) | $82.00 | $48.52 |
| Gold | $1,767 | $1,893 |
| US Dollar | 93.95 | 89.94 |
| 2 Year Treasury | 0.41% | 0.13% |
| 10 Year Treasury | 1.59% | 0.93% |
| 30 Year Treasury | 2.05% | 1.65% |
| *Source: Morningstar, YCharts, and US Treasury as of October 16, 2021* |  |  |

 

Asset Class Returns

| Category | Representative Index | YTD 2021 | Full Year 2020 |
| --- | --- | --- | --- |
| Global Equity | MSCI All-Country World | 14.8% | 16.3% |
| Global Equity | MSCI All-Country World ESG Leaders | 16.4% | 16.0% |
| US Large Cap Equity  | S&P 500  | 20.4% | 18.4% |
| US Large Cap Equity  | Dow Jones Industrial Average | 17.0% | 9.7% |
| US Small Cap Equity  | Russell 2000 | 15.6% | 20.0% |
| Foreign Developed Equity | MSCI EAFE | 10.4% | 7.8% |
| Emerging Market Equity | MSCI Emerging Markets | 1.2% | 18.3% |
| US Fixed Income | Bloomberg Barclays Municipal Bond | 0.7% | 5.2% |
| US Fixed Income | Bloomberg Barclays US Agg Bond | -1.7% | 7.5% |
| Global Fixed Income | Bloomberg Barclays Global Agg. Bond | -4.2% | 9.2% |
| *Source: YCharts as of October 16, 2021* |  |  |  |

 

[[1]](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021?hs_amp=true#_ftnref1) Source: [Goldman Traders Deliver Surprise Surge in Firm’s Best Year - Bloomberg](https://www.bloomberg.com/news/articles/2021-10-15/goldman-traders-deliver-surprise-surge-in-firm-s-best-year-ever)  
[[2]](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021?hs_amp=true#_ftnref2) Source: YCharts  
[[3]](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021?hs_amp=true#_ftnref3) Source: [Wage Inflation Is Spreading Through the Economy, Goldman Sachs CEO Says - Bloomberg](https://www.bloomberg.com/news/articles/2021-10-15/goldman-s-ceo-says-wage-inflation-is-spreading-through-economy)

 

[**Download PDF Version**

](https://financial.oneascent.com/hubfs/2021.10.18%20OneAscent%20Weekly%20Investment%20Update.pdf)

 

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.

[View full post](https://financial.oneascent.com/blog/weekly-investment-update-october-18-2021)

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