Mid-Year Outlook
The United States economy has moved into a phase that can be described as “bending, but not breaking.” With first quarter real Gross Domestic Product (GDP) registering a growth rate of 1.4%, the second quarter is forecast to accelerate to 2% before moderating to 1.6% for both the third and fourth quarters.
Waiting for the Window to Cut Interest Rates
Core bonds ended the second quarter unchanged and are down 0.7% year-to-date. Corporate bonds barely outperformed Treasuries in the quarter but given a strong first quarter are up 116 basis points year- to-date.
Quarter in Review
Global equity markets continued to be led by the United States during the second quarter. Domestic equities, measured by the Russell 3000 Index, rose 3.2%.
