Global equity markets posted another quarter of solid gains and added to a dramatic 18-month performance rebound. A continued rally in the stock prices of the largest U.S. companies by market capitalizations (mostly Technology stocks) once again drove the U.S. equity market’s gain. The S&P 500 index was up 3.9% in the quarter and is now up nearly 14.5% for the year, excluding dividends. The stocks of smaller U.S. companies (Russell 2000) and foreign companies (MSCI ACWI Ex USA) continue to lag the S&P 500 by a wide margin. The Russell 2000 index was down during the quarter and is up only 1% year-to-date, while the MSCI ACWI Ex USA index was flat for the quarter and is up only 4% for the year. Meanwhile, a rise in U.S. Treasury yields continued to weigh on bond prices, offsetting the income bonds have generated so far this year. Through the end of June, the Bloomberg Barclays U.S. Aggregate Bond Index (the benchmark for U.S. bonds) is down 0.7%, although our bond portfolios have beaten the benchmark and are slightly positive in that time frame…
