Markets & Economy

The Economy: June 2013

Market Comments:

The Fed comments regarding the potential tapering of asset purchases was the main driver of market performance during the month of June. Financial assets and commodity prices posted negative returns as volatility picked up toward the end of the month, following Bernanke’s statement. Rates continued to climb and the 10-year treasury closed the month with a yield of 2.52%, a significant increase from the low of 1.66% on May 2nd. Retail sales showed solid gains for the month of May, up 4.3% year over year and will likely have a positive impact on 2nd quarter GDP. According to Federal Reserve Flow of Funds data, all wealth has been recovered since recession has household net worth has reached a new peak at just over $70 trillion.