top of page

Stock & Bond Markets Post Positive Returns in Q2 of 2021

Stock Market Dominance Continues:


Stocks again posted very positive returns during the second quarter of 2021. The US Stock Market was up over 8% and International and Emerging Markets were up over 5% as you can see in page 3 of the attached Quarterly Market Review.


In the United States and International Developed Stock Markets, large company growth stocks were the highest performing asset class last quarter as you can see on pages 8 and 9. The price of growth stocks tends to be high while the price for value stocks tends to be low. Over the long-term, we expect value stocks to outperform growth stocks. Even though that has not happened over the last decade, value stocks have outperformed growth stocks over the last 12 months in the United States, International Developed and Emerging Markets Stock Markets as you can see in pages 8-10 of the report.



Bonds Posted Positive Returns:

It wasn’t just stocks that posted positive returns last quarter, bonds also increased in value as you can see on page 3. Also on that page you can see that during the first quarter of this year, the US Bond Market was down 3.4% and International Bonds were down 2.7%. We were glad to see that the tide turned this quarter, and the returns were positive, even if just slightly.


Inflation on the Rise?

On Page 18 and 19 of the attached Quarterly Market Review you can read an article with a conversation with Eugene Fama, a Nobel Laureate, regarding his thoughts on predicting inflation. In this article, he states, "We haven't been in a period of high inflation, or even moderate inflation, for at least 10 years, so I'm not particularly concerned that inflation will be high soon." Inflation is on the rise, and you can expect to see additional resources from us on this topic in the future.




See full Market Review of Second Quarter 2021 here:



Comments


 

 

© 2020 Financial Freedom for Dentists, LLC

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Financial Freedom for Dentists LLC and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Advisory services are offered through Financial Freedom for Dentists LLC, a SEC Investment Advisor.  Financial Freedom for Dentists LLC is not affiliated with or endorsed by the Social Security Administration or any government agency, and are not engaged in the practice of law. The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Washington or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Images and photographs are included for the sole purpose of visually enhancing the website. They should not be construed as an endorsement or testimonial from any of the persons in the photograph. The inclusion of any link is not an endorsement of any products or services by Financial Freedom for Dentists LLC. All links have been provided only as a convenience. These include links to web sites operated by other government agencies, nonprofit organizations and private businesses. When you use one of these links, you are no longer on this site and this Privacy Notice will not apply. When you link to another web site, you are subject to the privacy policy of that new site.  When you follow a link to one of these sites neither Financial Freedom for Dentists LLC, nor any agency, officer, or employee of the Financial Freedom for Dentists LLC warrants the accuracy, reliability or timeliness of any information published by these external sites, nor endorses any content, viewpoints, products, or services linked from these systems, and cannot be held liable for any losses caused by reliance on the accuracy, reliability or timeliness of their information. Portions of such information may be incorrect or not current. Any person or entity that relies on any information obtained from these systems does so at her or his own risk.

Advisory services are offered through Financial Freedom for Dentists LLC, a SEC Investment Advisor.  The Adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.

bottom of page