The month of August saw an increase in the number of COVID-Delta variant cases, a botched withdrawal from Afghanistan with legitimate questions about the competence of leadership in a number of areas, several hurricanes, and further record highs in the S&P 500 index.
To be clear, this is not a political statement. Too often investors get hurt when they ignore reality and do not confront “what is.” For the record, over the years we have been equally critical of both sides of the aisle when the facts dictate.
Despite the headlines, the S&P 500 gained 2.8 percent in August to close above 4500 for the first time in history. The yield on the 10-year U.S. Treasury inched up to 1.30 percent, while the price of a barrel of West Texas Intermediate oil fell roughly 6.5 percent for the month after being down more than 15 percent mid-month.