Revenue Growth and Corporate Profitability Should be Strong as Economy Continues to Grow
The three asset classes – U.S. equities, convertible securities, and high-yield bonds – utilized in the Income and Growth strategy advanced in the second quarter. The Russell 1000® Growth Index returned 11.9%. The ICE BofA U.S. Convertibles Index and ICE BofA U.S. High Yield Index returned 3.9% and 2.8%, respectively. By way of comparison, the 10-year U.S. Treasury returned 3.2% and the S&P 500® Index gained 8.6%.
Investors weighed stronger-than-expected first-quarter earnings results, positive second-quarter guidance, and a robust economic recovery against rising inflation and the timing of
future monetary policy adjustments.
The commentary is the opinion of the subadviser. This material has been prepared using sources of information generally believed to be reliable; however, its accuracy is not guaranteed. Opinions represented are subject to change and should not be considered investment advice or an offer of securities.
All investments carry a certain degree of risk, including possible loss of principal.
Past performance is not indicative of future results.