{"id":1064,"date":"2021-08-05T10:05:20","date_gmt":"2021-08-05T14:05:20","guid":{"rendered":"https:\/\/www.nepc.com\/private-wealth\/?p=1064"},"modified":"2021-08-06T10:07:41","modified_gmt":"2021-08-06T14:07:41","slug":"july-2021-market-commentary","status":"publish","type":"post","link":"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/","title":{"rendered":"July 2021 Market Commentary"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column][vc_column_text]The U.S. economy expanded at an annualized rate of 6.5% in the second quarter, falling short of the consensus estimate of 8.5%. Safe-haven assets ended July higher as concerns over the spread of the Delta variant and slower-than-expected growth weighed on investor sentiment.<\/p>\n<p>In equities, U.S. large-cap stocks outperformed with the S&amp;P 500 Index gaining 2.4%. Growth stocks reestablished their dominance over value equities, outperforming for the second consecutive month, as long-term interest rates continued to decline; the Russell 1000 Growth Index increased 3.3%, while the Russell 1000 Value Index returned 0.8% in July. The MSCI Emerging Market Index underperformed, declining 6.7% last month. The MSCI China Index, which represents 35% of the index, fell 13.8%\u2014the largest single-month decline since 2011\u2014as concerns over regulatory risk in China weighed on mega-capitalization companies and the education sector.<\/p>\n<p>Meanwhile, within fixed income, global yields moved lower. In the U.S., the Treasury yield curve continued to flatten with the 10- and 30-year yields falling 22 and 17 basis points, respectively. As a result, long-duration assets outperformed with the Bloomberg Long Treasury Index gaining 3.6% in July. The Fed Open Market Committee (FOMC) met at the end of the month and held rates near zero levels. However, it assumed a more hawkish tone suggesting that \u201cthe economy has made progress\u201d towards its goals. Still, Eurodollar futures implied probability for a rate hike in 2022 declined significantly.<\/p>\n<p>In real assets, the Bloomberg Commodity Index increased 1.8%. Spot gold prices rose 2.5% around concerns over slower-than-expected economic growth; the NAREIT Global REIT Index outperformed, up 4.2% in July.<\/p>\n<p>Monetary and fiscal interventions continue to provide a supportive environment for equities. To that end, we encourage investors to favor equities relative to lower-quality corporate credit as spreads remain near cyclical lows. While interest rates have declined, we still recommend investors maintain a dedicated allocation to Treasuries to provide downside protection and support portfolio liquidity needs.[\/vc_column_text][vc_single_image media=&#8221;1063&#8243; media_width_percent=&#8221;100&#8243;][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]The U.S. economy expanded at an annualized rate of 6.5% in the second quarter, falling short of the consensus estimate [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":1063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[12],"tags":[16,17,31,18,19,20,32,21,33,23],"class_list":["post-1064","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-corporate-defined-benefit","tag-defined-contribution","tag-discretionary-services","tag-endowments-and-foundations","tag-healthcare","tag-insurance","tag-market-commentary","tag-private-wealth","tag-public","tag-taft-hartley"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>July 2021 Market Commentary<\/title>\n<meta name=\"description\" content=\"The U.S. economy expanded at an annualized rate of 6.5% in the second quarter, falling short of the consensus estimate of 8.5%. Safe-haven assets ended July higher as concerns over the spread of the Delta variant and slower-than-expected growth weighed on investor sentiment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"July 2021 Market Commentary\" \/>\n<meta property=\"og:description\" content=\"The U.S. economy expanded at an annualized rate of 6.5% in the second quarter, falling short of the consensus estimate of 8.5%. Safe-haven assets ended July higher as concerns over the spread of the Delta variant and slower-than-expected growth weighed on investor sentiment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/\" \/>\n<meta property=\"og:site_name\" content=\"NEPC - Private Wealth\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-05T14:05:20+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-08-06T14:07:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2021\/08\/July-2021-Market-Commentary-e1628174265181.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"634\" \/>\n\t<meta property=\"og:image:height\" content=\"330\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"NEPC\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"NEPC\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/\"},\"author\":{\"name\":\"NEPC\",\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/#\/schema\/person\/291f8d98618e9073a335da2e099f0a7d\"},\"headline\":\"July 2021 Market Commentary\",\"datePublished\":\"2021-08-05T14:05:20+00:00\",\"dateModified\":\"2021-08-06T14:07:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/\"},\"wordCount\":329,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2021\/08\/July-2021-Market-Commentary-e1628174265181.jpg\",\"keywords\":[\"Corporate Defined Benefit\",\"Defined Contribution\",\"Discretionary Services\",\"Endowments and Foundations\",\"Healthcare\",\"Insurance\",\"Market Commentary\",\"Private Wealth\",\"Public\",\"Taft-Hartley\"],\"articleSection\":[\"Blog\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/\",\"url\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/\",\"name\":\"July 2021 Market Commentary\",\"isPartOf\":{\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.nepc.com\/private-wealth\/july-2021-market-commentary\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.nepc.com\/private-wealth\/wp-content\/uploads\/sites\/3\/2021\/08\/July-2021-Market-Commentary-e1628174265181.jpg\",\"datePublished\":\"2021-08-05T14:05:20+00:00\",\"dateModified\":\"2021-08-06T14:07:41+00:00\",\"description\":\"The U.S. economy expanded at an annualized rate of 6.5% in the second quarter, falling short of the consensus estimate of 8.5%. 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