by Vicki Simpson, Trading Analyst, SoundView Advisors

Bonds and Treasury returns were up in Q2, but still negative for the year. Fixed Income will likely continue to see volatility in the short term as the Fed maintains low-interest rates and continues its bond purchase plan. FOMC continues to keep a close eye on employment and inflation expectations as signals to make more significant changes to their current policies. The latest Fed meeting hinted at a possible bond purchase taper later in the year and pulled interest rate increases forward into 2023.

The second quarter of 2021 had a lot of good news for the US markets. Vaccines became widely available, recovery in many sectors of business accelerated, employment numbers rose, and the economy overall is continuing to show strong growth. Across the globe, the recovery has been uneven, but all markets were positive for Q2 with the US (S&P 500) being the best performer. Despite many parts of the world still in the grips of COVID, economic recovery and growth are expected to strengthen in the second half of the year in international markets.

We hope you all are enjoying the summer season; finding time to rest, refresh and staying cool. We look forward to seeing you at your fall meetings, perhaps even in person!