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Equity Overview

The major indices diverged in June, with the S&P 500 and the NASDAQ Composite up strongly while the Dow was down marginally. Sector performance was similarly uneven, as technology, consumer, and energy stocks outperformed while materials and financial stocks lost ground

Growth stocks dramatically outperformed value stocks, which posted negative returns for the month.

Volatility was unusually mild, with the S&P 500 moving more than 1% on only two days (down 1.3 % one day, up 1.4% the next day).

Macro Overview

Economic data reported in June were generally positive, with manufacturing and employment particularly robust. Consumer confidence hit its highest level in 16 months.

Meanwhile, consumer prices reported in June maintained their upward trajectory, rising 5.0% year-over-year. This exceeded the 4.2% increase reported in May, which was the highest since September 2008.

In response, cracks have appeared in what was previously unified sentiment at the Fed favoring continued easing in monetary policy. Some governors are now suggesting tightening sooner rather than later, starting with slowing the pace of Fed bond purchases. Chairman Powell, however, urges caution. He continues to believe that the inflationary pressures are temporary and will resolve on their own as the economy returns to normalcy.

The ebb and flow of the Covid-19 pandemic continues to impact the stock market and the broader economy. As the Delta variant became the dominant strain in June the virus began to spread again, reversing earlier progress. The problem was exacerbated by a troubling slowdown in the rate of vaccination, particularly in red states, where disinformation prevails and the issue has become politicized. Rates of transmission, hospitalizations, and deaths are rising significantly in those areas. Equally ominous, as the virus continues to infect a large segment of the population, the prospect for further mutation increases—potentially posing a threat to the already-vaccinated.

  Source: Johns Hopkins University Coronavirus Resource Center

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets. Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund. The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.

Dow Jones	37,815
S&P 500	5,035
Nasdaq	15,657

2 Yr Treasury	5.04%
10 Yr Treasury	4.69%
10 Yr Municipal	2.80%
High Yield	7.99%

Dow Jones	0.34%
S&P 500	5.57%
Nasdaq	4.31%
MSCI-EAFE	1.98%
MSCI-Europe	2.05%
MSCI-Pacific	1.82%
MSCI-Emg Mkt	2.17%

US Agg Bond	0.50%
US Corp Bond	0.56%
US Gov’t Bond	0.48%

Gold	2,297
Silver	26.58
Oil (WTI)	81.13

Dollar / Euro	1.07
Dollar / Pound	1.25
Yen / Dollar	156.66
Canadian /Dollar	0.79

Stock Indices:

Bond Sector Yields:

YTD Market Returns:

Commodity Prices:

Currencies:

Portfolio Overview

Equity Overview

Macro Overview

Additional Disclosures

Ocean Park Capital Management · 2503 Main Street · Santa Monica CA 90405 · 310-392-7300