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.

Last week saw a number of important economic data releases, with a focus on July’s inflation reports and a first look into consumer confidence in August. Consumer inflation slowed in July compared with data from June, but the overall level of inflation remains elevated. This will be another busy week for updates. Highlights will include reports on the housing sector as well as retail sales in July.

In 2020, the U.S. GDP declined 3.4 percent, yet the S&P 500 was up 18.4 percent. In the first half of 2021, the U.S. GDP grew by 6.4 percent, and the S&P 500 was up by 15.25 percent.

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!

Last week saw a number of important economic data releases. Highlights included better-than-expected results for service sector confidence and hiring in July. This will be another busy week for updates, with a focus on July’s Consumer Price Index and Producer Price Index reports, as well as a first look at consumer confidence in August.

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.

Today’s post is from Rob Swanke, senior fixed income analyst on our Investment Management and Research team.