Market Commentary

Q1, 2021

Summary

  • At the end of the quarter, investors enjoyed the robust returns of riskier asset classes and policymakers’ continued commitment to extraordinary accommodation.
  • The celebratory mood is also due to the great work from vaccine developers and distributors as more than 109 million Americans had received at least one dose of the COVID-19 vaccine by the end of the quarter.  
  • These developments overshadowed the bear market in longer-duration bonds and the implosion of a few high-profile hedge funds.
  • Inflation remains the key to decoding how long this unsustainable policy support can last. As long as inflation remains contained, investors may continue to throw the confetti.

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