2Q, 2021 Commentary: Taking Stock

Summary

• Most asset prices rose during the quarter amidst continued economic reopening and extraordinary levels of policy accommodation.
• Bonds rallied during the quarter, reversing a portion of their losses from the previous quarter—one of the worst since the early 1980s.
• Although the labor market continues to improve, it still needs to make substantial progress before policymakers achieve their goal of a return to pre-pandemic employment levels.
• The political willingness to continue unsustainable spending is being ratified by Fed policies and recent price action in the bond market.

Read and download the commentary here.