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Sustained upside inflation risks remain low despite recent stimulus measures, but inflation dynamics are fluid.
Reopening risks weighed on midstream energy performance and relatively attractive yields benefited real estate.
In regard to fixed income, nominal Treasury yields fell across the curve and positive risk sentiment benefited credit spreads.
Investors can expect continued accommodative monetary policy and should recognize the Fed’s willingness to employ necessary emergency tools.
Global assets continued to recover in May but year-to-date returns broadly remain negative with the exception of fixed income.
Fiscal and monetary policy response to the global pandemic drive April performance in fixed income and equities markets.
Flight to safe haven assets and a halt in economic activity drive performance in fixed income and equities markets in first quarter 2020.
While volatility remains, we think the actions of the Fed and policymakers will eventually help to stabilize markets and restore liquidity.
Elevated uncertainty associated with coronavirus outbreaks weighed on business activity and investor sentiment.
In response to concerns about the economic fallout from COVID-19, the Federal Reserve (Fed) cut their policy benchmark rate mid-cycle.