Milliman FRM Market Commentary: July 2018

Stocks hit the ground running to start the second half of 2018. In this month’s commentary, Milliman’s Joe Becker addresses the following:

• All three major segments of the global equity market pushed higher in July amidst cooling trade war rhetoric, rising global interest rates and reports of strong economic growth.
• With its fourth consecutive positive monthly return and its best since January, the S&P 500 increased its YTD return to 6.5%.
• Small-cap stocks continued their winning streak with their fifth consecutive month of positive returns, during which they’ve risen 14.5%.
• After touching a YTD low in late June, EM equities reversed course in July, benefiting from a reprieve in the US dollar’s ascent and climbing 2.5%, their first positive monthly return in six months.
• The relatively low equity market volatility in June extended into July as positive news outweighed the negative, pushing stock prices gradually higher.
• After declining in June, the correlation of the S&P 500 to global ex-US equities increased steadily higher during July, while its correlation to the U.S. aggregate bond market, after rising and falling remained largely unchanged.

To learn more, download the full commentary at

Leave a Reply