June Distractions Upend Stocks and Bonds, Wiping Out Most of 2015's Gains
After the soft winter months, most US economic data seemed to indicate a reacceleration during the second quarter. Global data also firmed, especially in Europe. Still, the US dollar gave back some gains over the course of the quarter. A breakdown in Greek debt negotiations in late June undercut stocks and bonds, increasing volatility for both. All of the major stock indices were negative for June, though results for the second quarter were mixed. Developed international stocks underperformed in June, but held onto their considerable year-to-date lead. US stocks underperformed for the second quarter and remain behind for the year. Higher rates for three straight months hurt most bond indices during the quareter as US core bonds declined, tipping it into negative territory for 2015. Minicipals outpaced most other bonds in June, while high yield was the top performing domestic fixed income sector for the quarter and year. Agricultural prices surged, helping commodities to a decent gain for June and the second quarter, yet remaind down for 2015.
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