Market Comments: As of May 2015
The second estimate of first quarter U.S. GDP showed that the economy contracted at a 0.7% annual rate. Despite the subdued start to the year, recent manufacturing and housing data suggest that the downturn may be short lived. Domestic equity markets confirmed this notion, with the large cap S&P 500 and the small cap Russell 2000 gaining 1.29% and 2.28% for the month, respectively. International and emerging market equities did not perform as well, both suffering losses in May. However, year-to-date, the MSCI EAFE is up 8.60%, and the MSCI Emerging markets has increased 5.69%. Investment grade bonds continue to provide little in the way of return, but high yield securities have been a bright spot, up over 4% through the end of the month.