Good Afternoon Friends and Family of Park City Family Office,
As we close the chapter on the first half of 2021 and head into a weekend of celebration, we wanted to share a recap of two themes that have dominated market discourse in the first half of 2021: the economy’s reopening and the potential for inflation. (Perhaps this will provide lively weekend BBQ conversation ;)) Both themes helped push up bond yields through the first quarter. Higher bond yields weighed on stocks like Facebook, Google and NVidia. Stocks with high growth prospects like those tend to suffer when rates rise. In the second quarter, longer-term bond yields declined. Growth stocks did better. Perhaps the Fed has convinced markets that the inflation surge really is temporary tied transient supply chain issues or that it will be able to corral the current pressure on prices. Time will tell.
We at Park City Family Office have been playing this straight down the middle of the fairway. We believe that it is best to remain invested in the broad market. With markets broadly doing well, this is not a time for bold bets or dramatic shifts in asset allocation.
Should you wish to reflect on your personal wealth strategy with our team, email us at Michael@parkcityfamilyoffice.com to set up an appointment.
For everyone else, may you continue the 245-year tradition of celebrating the birth of American Independence with friends, family, while knowing you can be great stewards of your hard earned wealth through prudent investing with the assistance of the resources here at Park City Family Office.
Morgan, Bruce, Rich & Mike