Employer Bulletin: Your plan administration resource

Investment insights

Second Quarter 2021 Equity Market Overview and Outlook: As the economic reopening continued to gain steam, U.S. equities recorded another strong quarter of performance. Key findings include:

  • Vaccine progress and pent-up consumer demand continue to propel equity markets higher.
  • Record earnings saw 87.5% of S&P 500 companies beat their earnings estimates.
  • Inflationary pressures began to focus as the Federal Reserve moved up its timeline for rate hikes to 2023 and acknowledged that inflation risks could be to the upside.

Second Quarter 2021 Fixed Income Market Overview and Outlook: The country continues to recover and has shown improvement in many of the broader metrics, as restrictions in response to the pandemic have been lifted in most states. Key findings include:

  • Inflation continues to be a topic of focus in fixed income markets. The Federal Reserve maintains that the current price increases are transitory in nature. The U.S. Treasury market seems to indicate that it tentatively agrees.
  • Credit spreads in fixed income markets have generally continued to tighten and currently sit at historically tight levels. We continue to believe that non-agency commercial mortgage-backed securities represent the most attractive relative value.

For more about the financial markets, check out our Investment Insights.