Highlights

  • Despite concerns over inflation, Federal Reserve policy and Covid-19 variants, the S&P 500® advanced 15.25% in the first half of 2021.
  • Given the mix of strong returns, calm equity market conditions and ongoing uncertainty, investors might be wise to prepare for the unexpected in the second half.
  • Meanwhile, the bond markets have posted negative returns year-to-date, so one strategy may be to reposition portfolios to be less reliant on fixed income.
  • In this environment, investors may benefit from increasing allocations to strategies that focus on delivering a low-volatility equity profile.

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