Market Perspectives (August 2013)

by Jim Baird on August 12, 2013

Executive Summary

  • Domestic equities gained ground in July, adding to impressive year-to-date gains. International equities kept pace with their domestic counterparts during the month, helped in part by a moderate decline in the U.S. Dollar.
  • High-quality bonds posted minimal gains in July, limited by modest steepening of the yield curve during the month.
  • Monetary policy was unchanged coming out of the July’s FOMC meeting, and no additional communication surrounding the timing of the Fed’s exit strategy was provided.
  • Headline inflation rose in June, pushed higher by rising prices at the pump. Meanwhile, core inflation remains well below the Fed’s 2% target.
  • The July employment report showed job creation was weaker than expected and revisions to prior months were negative. The unemployment rate dipped to 7.4% during the month, providing some good news.

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