Tomorrow, I will give my usual pandemic update (spoiler alert: improvement continues). But today I’d like to focus on what is becoming increasingly clear: the stock market and, to a lesser extent, the economy have started to move past the pandemic. While it clearly isn’t over and will continue to have an effect on both, the headlines and market reactions have moved on.

It’s my first day back from vacation, and I’m thinking I should take time off more often. Not only did we get some great posts here from my colleagues (thank you, all!), but my absence apparently allowed markets to hit new all-time highs. With investors getting excited, many expect the run-up to continue, despite the fact that I am now, metaphorically, back in the office. Sentiment is increasingly positive, and the fear of missing out is becoming a powerful driver for nervous investors to get back in the market. But should they?

Last week, the economic highlight was the housing sector, which has continued to impress since reopening efforts took hold, driven by record low mortgage rates. This will be a busy week for updates, with reports scheduled to cover wide swaths of the economy.

Brad here. Today we’ll get an update on the municipal bond market from Nick Follett, manager of fixed income on our Investment Management and Research team. Over to you, Nick.

Brad here. With so much unknown in our world, it seemed the perfect time to discuss how to position a portfolio for uncertainty. Today, Christ Stuart, a senior investment research analyst on our Investment Management and Research team, will do just that. Take it away, Chris.

Brad here. Today's post on the growing disparity we're seeing between growth and value stocks is brought to you by Peter Roberto, an investment research analyst on Commonwealth’s Investment Management and Research team. Take it away, Peter.

Brad here. Today’s post on the recent volatility of the U.S. dollar comes from Anu Gaggar, senior analyst on the Investment Management and Research team here at Commonwealth. Take it away, Anu.

Not too long ago, Brad wrote that the dollar is not going away. While that may be true, we are seeing considerable volatility in its value. What’s going on—and what does it mean for your investments? Of course, there is no crystal ball to answer such questions, but we can certainly take a deeper dive to better understand what is happening and how to deal with it.

Last week was relatively busy on the economic update front, with a focus on inflation, retail sales, and consumer confidence. The reports came in mixed, with better-than-expected results for consumer confidence and jobless claims offsetting disappointing retail sales data and faster-than-anticipated inflation in July. This week will be relatively quiet for economic updates, with releases focusing on the housing sector and the minutes from the Fed’s most recent meeting.

Today, I'd like to provide an update on the coronavirus, including the effects on the economy and markets. We had some good news on the pandemic front this week, with the virus now back under control. Nationally, the daily spread rate is down to around 1 percent per day, and the daily number of new cases has held steady at about 55,000. Plus, the data shows that outbreaks are being contained in most states. One area of concern is testing. The number of tests has trended down over the past two weeks, and the positive rate remains well above what it should be.

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

Markets continued to rise in July, showing the second wave of the pandemic was not enough to derail the economic recovery. The S&P 500 increased by a strong 5.64 percent during the month. The Nasdaq Composite and Dow Jones Industrial Average (DJIA) also saw positive performances, marking a solid start to the third quarter. Although the continued market rebound in July was certainly welcome for investors, very real risks to markets remain, as we can see when we look at the key factors that matter when determining the overall risk level.