Q2 2021 market update

Q2 of 2021 had its fair share of positive virus and economic news which resulted in all-time market highs. Some notable happenings between April and June of this year:

·  Lowest infection rates in the US since 2020. There is comforting evidence that multiple vaccines have been effective against COVID, including against the highly contagious Delta variant.

·  Accelerated job growth. The economy generated about 1.7 million new jobs during the quarter.

·  Continued growth in U.S. stocks. The S&P500 and Dow Jones Industrial Average had record highs.

·  Sharply increased U.S. GDP projection of 7% due to unprecedented fiscal and monetary support from the Federal Reserve and Congress.

Uncertainty still remains top of mind as we enter the second half of 2021. Even with all the positive virus and economic news, pandemic risks still exist. We continue to be cautiously optimistic about future economic growth.

There has been lots of noise regarding the possibility of increased inflation and its potentially unfavorable economic effects. We’d like to place these concerns in perspective. A healthy economy runs on an inflation rate of approximately 2%. Since the financial crisis, inflation has been fluctuating slightly north of 1% even while the Federal Reserve has unsuccessfully targeted a 2% inflation rate. Economists now anticipate about 2% average inflation over the next ten years, which is higher than we have experienced, but within the realm of historic norms.

In any market environment, we resolutely believe that investors should stay diversified across a variety of asset classes. We work diligently to ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk.

The S&P 500 Index has risen 15.3% since the beginning of the year.