A Jubilant July

Monthly Market Snapshot: July 31, 2022

Highlights

The global equity market rebounded in July as investors digested lower commodity prices, lower Treasury yields, stable U.S. corporate profits, and the potential for a less aggressive Federal Reserve. The MSCI AC World Index, a broad measure of global stocks, surged 6.9% - though the year-to-date return remains negative at -15.5%. In the United States, the S&P 500 jumped 9.1% while the beaten-down NASDAQ recovered 12.3% as Treasury yields retreated on lowered inflation and growth expectations. International returns were more subdued with the Euro STOXX 50 adding 4.7% and the MSCI Japan Index gaining 5.7%. Global fixed income returns were positive as well with the FTSE World Broad Investment Grade Bond (USBIG) index recouping 2.7%.

Citi Global Wealth Investments’ (CGWI) Global Investment Committee lowered its global equity weighting to neutral by bringing down its exposure to oil field services and fintech. Our remaining tactical overweight positions include natural resource stocks, global pharmaceuticals and healthcare, and dividend growers (like consumer staples). Our global fixed income underweight was reduced from -3% to -1% as we added exposure to intermediate-term U.S. corporate bonds and preferred stock.