Have Things Been Too Quiet?

July 26, 2021 | Greg Leonberger, FSA, EA, MAAA, FCA, Director of Research, Managing Partner

Although this is only the second iteration of my quarterly letter series, Marquette has always produced quarterly market narratives in one shape or another. And in almost all cases, it has been relatively straightforward to formulate a narrative that stitches together the primary headlines from the prior three months. But as I sit here today, things seem quiet…too quiet, almost. Of course, it is the first summer after a crippling global pandemic that shuttered the economy and constrained us almost exclusively to our homes for the better part of the year. Summer is in full swing and the images of crowded beaches overlaid with higher prices for airline tickets and hotel stays illustrate that people are getting back to their pre-pandemic lifestyles, both socially and economically. Anecdotally, my email volume slowed over the last quarter as well; whether this is pure coincidence or a function of markets generally behaving in conjunction with economic re-openings and summer vacations remains to be seen.

Nonetheless, the purpose of this letter series is to track the pulse of the financial markets and let our readers know what we’re thinking about (worrying about?) when looking at the overall financial market landscape. Given that objective, the following outlines several market factors that we believe bear monitoring as the remainder of the year plays out.

Highlights from this edition:

  • Market volatility and reversion to the mean
  • COVID-19: new uncertainty with the Delta variant, vaccination progress
  • Interest rate expectations
  • Inflation following a crisis
  • Valuations: signals from the credit and equity markets

Read > Have Things Been Too Quiet?

 

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

 

Greg Leonberger, FSA, EA, MAAA, FCA
Director of Research, Managing Partner

Get to Know Greg

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

04.16.2024

The Banks’ Real Estate Problem

First quarter earnings season is getting started, with the largest banks reporting first. In the wake of last year’s regional…

04.11.2024

First to Cut: The Fed or the ECB?

Based on implied probabilities derived from options markets, investors are currently forecasting an 82% chance that the European Central Bank…

04.10.2024

1Q 2024 Market Insights Webinar

— LIVE WEBINAR APRIL 25 — Please join Marquette’s research team for our 1Q 2024…

04.01.2024

Sweet and High Up

Chocolate eggs and bunnies may have appeared more expensive to shoppers this Easter weekend, as the price of cocoa futures…

03.27.2024

The Crystal Ball Has Clouded

Last month, Marquette published a Chart of the Week that highlighted the aberrational length of the current…

03.26.2024

Assessing the Likelihood of a Recession and Understanding the Impact on Portfolios

Is a recession coming to the U.S.? It’s a question that has been asked since 2022, as the Fed’s rapid…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >