- Stocks were mixed last week. We saw global markets (represented by the MSCI All Country World Index) down -0.1% and domestic stocks (represented by the S&P 500 Index) up 0.4%. Trailing the pack were international developed, emerging markets, and U.S. small companies, which were all negative for the week.
- Corporate earnings season is upon us and analysts expect that growth will be the highest in a decade. According to FactSet, Q2 earnings are expected to rise nearly 70% for S&P 500 companies. This is due to vaccine rollout and economic reopening, along with depressed earnings from the early part of the pandemic last year.
- At the end of the first quarter, we had seen U.S. bond yields pushing 1.7%. At points during last week, the 10-year bond yield had fallen down below 1.30% as investors bought Treasury bonds. Concerns over rising inflation and rapid economic growth pulled back.
- With OPEC countries at odds over production, oil prices finally retreated for a week as they fell down to around $73/barrel.
- The big report this week will come on Thursday when the export and import prices report comes out from the U.S. Bureau of Labor Statistics. All eyes will be on the Consumer Price Index and whether it can maintain its recent increases.
- I’d like to leave you with the final line we’ve used since we started these commentaries back at the very height of market volatility in March 2020. Always remember that we create financial/investment plans not for the easy times, but to prepare for the tough ones.
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