Bonds regain balance amid market volatility, meanwhile consumer sentiment takes a dip
Let’s take a closer look…
- Stocks around the world experienced more turbulence last week. This time it was driven by concerns around export controls for semiconductors, which dampened the outlook for technology companies’ earnings.
- Bond markets bounced back after some recent volatility. Investment-grade bonds have experienced overall gains this year, providing diversification from volatile US stocks.1
- Initial jobless claims remained low, despite economic uncertainty.2 This suggests that the job market has remained resilient so far this year. This measure is important for assessing economic health and many investors are monitoring it for further developments.
- Meanwhile, consumer sentiment fell again. Consumers showed concern for anticipated price increases and rising unemployment numbers later this year. 3 Despite this, consumer spending remained strong. Consumers have ramped up their current spending—likely in anticipation of future price hikes due to tariffs—which has driven retail sales higher. 4
Portfolio Manager, Strategic Advisers LLC
"Volatile markets can provide opportunities for tax-loss harvesting and our investment managers are diligently looking out for these opportunities. Tax-loss harvesting may provide potential tax savings for investors. While market turbulence can be stressful to endure, it may also lead to better outcomes in the future."
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