From Our Investment Committee: July 2021 Economic & Market Commentary

We are pleased to bring you our bi-annual Economic and Market Commentary, authored by our Investment Committee, which provides a high-level summary of the current economic environment.

Executive Summary

  • Economic conditions recovered substantially in the first half of 2021 as COVID-19 restrictions eased and monetary and fiscal policy remained accommodative.
  • Inflation spiked in May to 5%, the largest year-over-year increase since the Global Financial Crisis. Most of this was attributed to key sectors of the economy such as used and new car sales and home prices. The Federal Reserve and market expectations suggest this rise in inflation is transitory and therefore not a long-term concern.
  • Global equity markets continued to climb to all-time highs, even amidst shrugging off short bouts of volatility caused by the retail investor frenzy back in January.
  • Real estate markets have enjoyed a broader based recovery with hotels, resorts, office, and retail rebounding in the first half of the year. Domestic and international real estate continue to be a strong source of returns as well as a solid hedge against short-term inflationary pressures.
  • Going forward there are several key themes that we continue to monitor including regulatory tightening around the China stock market, recovery from the ongoing COVID-19 pandemic, inflation fears, and additional fiscal policy coming out of Congress focused on infrastructure spending.

Read the full summary here.


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