Q2 Makes Investing Seem Easy – Market Commentary from Cabana’s CEO: July 8, 2021

2 months ago

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I hope everyone had a great holiday weekend and is enjoying the short week. I love the 4th of July for several reasons, but at the top of my list is that I always get to be with all my kids at once – under one roof and on one boat! I say this all of the time, but it is just so true… nothing matters more than time spent with the people that we love – everything else is just stuff.  

We talked a couple of weeks ago about how in the second quarter of 2021 U.S. equity markets seem to have settled into what is often called a Goldilocks Scenario, where the economy is neither too hot nor too cold. There was a time early in the year when it looked a little too hot and interest rates went screaming up. That perception moderated as economic data came in just right – strong, but not too strong. All the while, earnings have continued to impress as the domestic economy opens back up.

We are seeing this unique, and usually short-lived condition persist in the good fortune of all types of investors. Stocks are making new highs each month and bond investors are finally getting some love as the 10-year Treasury has fallen below 150 basis points and is holding there.

The past couple of months make it all seem easy. Well, I say enjoy it while it lasts, as there have been times in the not-so-distant past when investing seemed hard… really hard. That is the great thing about investing. It is kind of like the weather, just when you think it will never stop raining, the sun comes out. Oh yeah, it works the other way too.

Disclaimers

February 23, 2021

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