November Monthly Commentary
Risk-on sentiment washed over markets in November as softer-than-expected U.S. inflation data strengthened investors’ belief that the Federal Funds rate had peaked, emboldening them to price in more aggressive interest rate cuts in 2024. Fed Funds futures now reflect four rate cuts next year of 25-basis points each, even as the Federal Reserve insists policy […]
October Monthly Commentary
Stocks and bonds sold off in October as strong economic data underscored expectations that interest rates will remain higher for longer. The U.S. economy expanded at a faster-than-expected pace, rising at an annualized rate of 4.9% in the third quarter, bolstered by robust consumer spending and higher inventory levels. In addition, economic data reported over […]
UUA/UUCEF Values Based Investing Update
September, 2023 This is a quarterly update on environmental, social and governance (ESG) actions of the UU Common Endowment of the Unitarian Universalist Association. The UUCEF currently holds about $250 million in investments on behalf of hundreds of UU organizations, and is overseen by the UUA Investment Committee working with UUA staff and private investment […]
September Monthly Commentary
There was nowhere to hide in September as bonds and equities sold off amid market expectations of interest rates staying higher for longer; the optimism that rates will revert to under 3% sooner rather than later seemingly dissipated last month. So far, the Federal Reserve has increased rates by over 500 basis points, and appears […]
August Monthly Commentary
Global equities and bonds ended August in the red as concerns around economic growth in China and upward pressure on interest rates weighed on returns. The month started off on uncertain footing as Fitch Ratings downgraded the sovereign credit rating of the U.S. to AA+ from AAA, and the Bank of Japan unexpectedly adjusted its […]
July Monthly Commentary
Risk assets outperformed in July as better-than-expected economic data and moderating inflation bolstered expectations around a potential economic soft landing. The U.S. economy exceeded expectations, growing 2.4% in the second quarter, amid robust consumer spending and non-residential fixed investments. At the same time, inflation cooled with the core PCE Price Index rising less than 0.2% […]
June Monthly Commentary
With the Federal Reserve opting to skip an interest rate hike and the slew of robust economic data, the U.S. economy continued to flex its muscles in June. Despite the Fed’s decision to forgo a rate hike in June while ascertaining the health of the labor market and economy, Fed chair Jerome Powell reiterated the […]
UUA Board Statement, Post-General Assembly 2023, Regarding Divestment Reparations
June 30, 2023 Last week’s General Assembly was a meaningful yet challenging time for many Unitarian Universalists, including those of us on the Board of Trustees. While we were able to advance some significant priorities—including continuing the conversation about the proposed revisions to the Article II bylaws—we also heard some painful accusations regarding the Unitarian […]
May Monthly Commentary
Global equities were mixed in May, with U.S. markets outperforming despite continued concerns around economic growth and the protracted negotiations on the debt ceiling. The S&P 500 Index ended the month up 0.4%, pushing year-to-date returns to 9.6%. These gains come despite weakness in index breadth: a concentration of mega-capitalization technology companies have accounted for […]
December Monthly Commentary
On the heels of a Fed pivot, bonds and equities rallied in December to finish the year strong. Fed Chairman Jerome Powell appeared dovish during the Federal Reserve meeting last month, which was all markets needed to fuel a Santa Claus rally late in the year. The interest-rate moves in December were unprecedented with yields […]