As I wrote in yesterday’s post, we seem to have moved past the pandemic in many ways, but I realized it has been some time since I did an update on what that means. So here we are. Things are bad from a medical perspective, and the big question is whether medical conditions will continue to worsen to the point they affect the economy and markets. Right now, that does not look likely. I will be keeping an eye on the situation, however, and do another update when the answer becomes clearer.

This week, I am at the first Commonwealth conference (or, indeed, any conference) since March 2020. We are being very cautious—events are outdoors, and everyone was tested on arrival. But it is the first real large face-to-face event since then.

I originally shared this post back in 2014, but I think you will find it still offers some valuable lessons for today. — Brad

I thought it would be fun to share a couple of videos that offer some entertaining—and surprisingly accurate—lessons in economics. Even better, they do so à la rap!

I'll be on vacation for the rest of the week, so I'll be re-running a couple of my favorite posts. This one is from 2019, but I think the message holds true today. Enjoy! — Brad

I get a lot out of meeting with advisors and clients. It is always good to hear what people are thinking, listen to their concerns, and spend time understanding where real people who live outside of the investment bubble that I inhabit are coming from. The past week spent traveling was a great opportunity to do just that. But sometimes you get more than you expect.

For the second earnings season in a row, we have had blowout results. After an amazingly strong first quarter, the results for the second quarter are coming in even better. As of the end of last week, according to FactSet, 9 of 10 companies (91 percent) had reported. Of these, almost 7 of 8 (87 percent) beat expected earnings. These are the highest levels of beats on earnings seen since the start of records in 2008 and slightly above what we saw last quarter.

My colleague Sam Millette, manager, fixed income, on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Market Risk Update. Thanks for the assist, Sam!

Over the past couple of weeks, I have gotten a number of questions on inflation. It seems to be one of the top-of-mind issues. Given that, and the fact that the most recent inflation data hit this morning, it seems appropriate to give an update.

My colleague Sam Millette, senior investment research analyst on Commonwealth’s Investment Management and Research team, has helped me put together this month’s Economic Risk Factor Update. Thanks for the assist, Sam!

July was another dickens of a month—at once the best of times and the worst of times. For the financial markets, the news was largely good. The U.S. markets ended up across the board, hitting new all-time highs during the month. Earnings reports continued to substantially beat expectations. That good news, combined with dropping interest rates, drove markets higher. Bond markets continued to rally on those lower rates. From a financial perspective, July was a very good month here in the U.S.

The monthly jobs report gives us a good chance to think through where we are in the recovery—and what effect the most recent developments have had. With the next report coming this Friday, what should we be looking for?