Euro-drama continued to make headlines in the 2nd quarter. However–regardless of the many stories of possible inflation, what will happen with the election, Europe, and employment– investors have been quite tolerant. The S&P 500 ended the quarter down 2.75%, but for the year to date was up 9.40%.
As indicated by the chart below, year-to-date, large cap stocks were up 9.4% and ahead of small cap stocks at 8.5%. Fixed income still positive at 2.4%, lagged international stocks which were up 3.3%.
Consumer confidence rose slightly in June to 73.2 from May’s 70.2, though it was down when compared to the reported 79.3 in May. According to Bloomberg News, consumers fear that the economy will be unable to keep up with inflation. Consumers also continue to be uncomfortable with general employment and economic conditions.