Written by: Chris Cogliano, Portfolio Specialist/Investment Analyst
Key Takeaways:
- U.S. Small caps and Real Estate were market leaders for the month of July
- Falling interest rates aided the positive performance in Small Cap, Real Estate, and Fixed Income
- Inflation and employment are top-of-mind
Market Recap:
The markets in the month of July saw mostly positive performance led by U.S. Small Caps and Real Estate. U.S. Small Caps were up 10.16%, one of the best months in the history for the Russell 2000 index. Similarly, Public Real Estate posted a 7.94% gain. Both areas were boosted by falling interest rate expectations due to ongoing inflation and employment data. Fixed Income also benefited from the falling rate environment. The Bloomberg Aggerate also had a significant month and was up 2.63%. U.S. Large Caps, International Developed and Emerging Markets had a modest gain up 1.2%, 2.95%, and .37%, respectively and he worst performer of the group was commodities, down 2.8%. Overall, inflation and employment data are at the center of conversation and have been driving rate expectations, which have been volatile YTD.
Chart of the Month:
What does this mean for you?
These performances demonstrate the importance of maintaining a diversified portfolio in order to pursue your financial goals. When one asset class outperforms, others will tend to underperform. Building a diversified portfolio that aligns with your financial plan helps eliminate the uncertainty around situations like this and can increase your experience as a long-term investor. If you have any questions, please reach out to your Shepherd Financial Partners advisor.
Disclosures
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Investment advice offered through Shepherd Financial Partners, LLC. A registered investment advisor. Registration as an investment advisor does not imply any level of skill or training.
Securities offered through LPL Financial, member FINRA/SIPC. Shepherd Financial Partners and LPL Financial are separate entities. Additional information, including management fees and expenses, is provided on Shepherd Financial Partners, LLC’s Form ADV Part 2, which is available by request.
The content is developed from sources believed to be providing accurate information.
Source: @YCharts
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