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Market Insights

Treasury volatility returns as stocks advance
Equities rallied, notably small cap and value stocks, amid more vaccine progress and the anticipation of more stimulus.

Optimism abounds
While we are constructive on near-term markets, we will focus on the rebound in business activity following progress with the vaccine.

A “Glass Half Full” Market
November displayed the forward-looking nature of markets as global equities reacted positively that a vaccine may be distributed in 2021.

Fiscal stimulus tricks, no treats for markets
Rising COVID-19 cases and a failure from policy makers to pass further fiscal stimulus weighed on equity markets.

Tech tumbled, ended risk asset rally
U.S. dollar strengthened in September as the existing monetary stimulus wane and expectations for fiscal stimulus before the election fade.

Rally continued, but pace slowed
Sustained upside inflation risks remain low despite recent stimulus measures, but inflation dynamics are fluid.

Relatively attractive yields benefit real estate
Reopening risks weighed on midstream energy performance and relatively attractive yields benefited real estate.

Positive risk sentiment benefits credit spreads
In regard to fixed income, nominal Treasury yields fell across the curve and positive risk sentiment benefited credit spreads.
Fed holds on policy and shares updated projections
Investors can expect continued accommodative monetary policy and should recognize the Fed’s willingness to employ necessary emergency tools.

Risk assets and economic data diverge in May
Global assets continued to recover in May but year-to-date returns broadly remain negative with the exception of fixed income.