The Bottom Line
● U.S. equities resumed their uptrend after last week’s decline, with major indices all posting a positive week. The NASDAQ led the pack for the week at +2.84%.
● The 10-Year yield started the week with a steep decline, but reclaimed ground and settled -1 bps below last week’s level at 1.28. The 2-Year yield was also volatile, but settled -2 bps at 0.20.
● Economic releases were on the lighter side, with most of the data releases relating to housing. A negative surprise on jobs came in on Thursday and caused markets to pause.
With the Tokyo Olympics kicking off at the latter part of the week, the world was reminded where we have been and where we are since the start of the global pandemic. Traditionally a time of global celebration, the excitement was dampened by the absence of spectators at the games. Japanese equities had a short trading week due to the games and the Nikkei reflected the worlds’ disappointment by losing another -1.63% for the week. European equities were able to shake off some of the concerns over the spread of the delta variant and rose +1.49% for the week. US equities were able to dig themselves out of a hole after Monday and erase last week’s losses, although the negative surprise on the weekly jobs report on Thursday caused some hesitation. By Friday, the markets shook off the noise and resumed their climb with the tech heavy Nasdaq leading the way at +2.84%for the week, followed by the small cap Russell index at+2.15%. The S&P posted a respectable +1.96% for the week and is still the leader YTD at +17.46%. Markets will be closely watching the announcement and the language surrounding interest rates from the FOMC meeting next week.
Digits & Did You Knows
ARE YOU WEALTHY? — The average response from 1,000 Americans surveyed in the first half of 2021 is that it takes a net worth of $1.9 million in order to be considered “wealthy” in the United States today. (source: Schwab 2021 Modern Wealth Survey, BTN Research)
ONLY ONCE — Inflation, using the “Consumer Price Index” (CPI) as the measurement, was up +5.4% on a trailing 1-year basis as of 06/30/21. In the last 30 years, there was only 1 month when trailing 1-year inflation was greater than +5.4%. Inflation was up +5.6% for the 1-year ending 7/31/08.(source: Department of Labor, BTN Research)
Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.
Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management (“PCWM”) and Qualified Plan Advisors (“QPA”).
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