Secular growth and work-from-home assets outperformed in 2020 as the world struggled with the initial onset of Covid-19. In the first quarter of 2021 cyclical and value assets rebounded as vaccines were rolled out and the world emerged from lockdown. That quickly led to myriad reports of inflation, with concerns amplified by the Fed’s stated willingness to let the economy run hot.
The June quarter was another positive period of appreciation for the U.S. equity market. The single digit percentage gains for the indices were broad-based but most of the market was stuck in a side-ways consolidation. The churning, rotating action was below the surface of the S&P 500 and Nasdaq, both of which reached new all-time highs driven by the strength of the largest technology stocks.
The June quarter was another positive period of appreciation for the U.S. equity market. The single digit percentage gains for the indices were broad-based but most of the market was stuck in a side-ways consolidation. The churning, rotating action was below the surface of the S&P 500 and Nasdaq, both of which reached new all-time highs driven by the strength of the largest technology stocks.