Global equity markets retreated last week, as the S&P 500 (a proxy for large-cap US stocks) lost 1.7% and the MSCI ACWI (a proxy for global stocks) dropped 1.2%. Concern about the Covid-19 delta variant and its impact on the economic recovery seemed to be weighing on investors’ minds.
While it was a rough week for risk assets, it is important to remember just how far equity markets have risen in 2021. The S&P 500 is up nearly 20% year-to-date and the MSCI ACWI index isn’t far behind (up 15.4%). In fact, most major equity indexes remain within striking distance of their all-time highs (see chart below). Even emerging markets, which has lagged most other equity asset classes this year, is only about 8% off of its highest level.
Prices & Interest Rates
Crude Oil (US WTI)
2 Year Treasury
10 Year Treasury
30 Year Treasury
Source: Morningstar, YCharts, and US Treasury as of September 11, 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.