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%[1]. 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
| Representative Index | Current | Year-End 2020 |
|---|---|---|
| Crude Oil (US WTI) | $69.71 | $48.52 |
| Gold | $1,787 | $1,893 |
| US Dollar | 92.64 | 89.94 |
| 2 Year Treasury | 0.23% | 0.13% |
| 10 Year Treasury | 1.35% | 0.93% |
| 30 Year Treasury | 1.94% | 1.65% |
| Source: Morningstar, YCharts, and US Treasury as of September 11, 2021 |
Asset Class Returns
| Category | Representative Index | YTD 2021 | Full Year 2020 |
|---|---|---|---|
| Global Equity | MSCI All-Country World | 15.4% | 16.3% |
| Global Equity | MSCI All-Country World ESG Leaders | 16.6% | 16.0% |
| US Large Cap Equity | S&P 500 | 19.9% | 18.4% |
| US Large Cap Equity | Dow Jones Industrial Average | 14.6% | 9.7% |
| US Small Cap Equity | Russell 2000 | 13.5% | 20.0% |
| Foreign Developed Equity | MSCI EAFE | 12.9% | 7.8% |
| Emerging Market Equity | MSCI Emerging Markets | 2.9% | 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 | -2.3% | 9.2% |
| Source: YCharts as of September 11, 2021 | |||
[1] Source: YCharts
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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.