September 20, 2021—Recent economic data have been on the weaker side and is likely playing a part in the mini-swoon we’ve seen in markets, with the S&P 500 index down about 2% from a recent all-time high in early September. The softening in data is in large part due to the spread of the Delta variant in July and August. We are reducing our outlook for the U.S. economy for the remainder of 2021 but still expect solid growth in 2022.
September 20, 2021—German stocks have had a strong run of performance in 2021 through September 17, returning 12.3% in EUR terms and 7.7% in USD terms. More broadly, Euro Area stocks have returned 17.8% in EUR terms and 13.0% in USD terms. Consequently, our portfolio construction overweights to international developed country stocks have made a significant contribution to portfolio performance.
In the September issue of our monthly flagship publication, we feature:On the Record by Chief Investment Officer Tony Roth, where he shares his views on the resiliency of the financial markets amid political and social crises, including the resurgence of COVID-19 and waning vaccine effectiveness, China’s regulatory crackdown, and high U.S. inflation, among a host of other developments.