This summer and the second half of the year could be marked by more market volatility, as investors become less complacent about growing risks and momentum fades. Bond investors have been bidding up bond prices, sending 10-year Treasury yields lower, to under 1.3% (from 1.75% just a few months ago). This could be an ominous sign for the economy and equity investors are starting to take notice. Today, stock markets opened sharply lower as investors are growing more concerned that we could now be seeing peak economic growth and that the reopening trade may be over. Economic data is starting to come in lower than projected as we saw weekly jobless claims unexpectedly rise and a survey to business leaders in the service sector came in weaker than expected with supply and labor shortages. These economic concerns are coupled with the growing worries around the COVID-19 Delta variant which is making its way around the globe.

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Commentaries are published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.