- The U.S. reopening is in full swing as falling COVID case numbers and easing restrictions have allowed activity to resume at a robust pace. The CDC reports that over 60% of American adults have received at least one vaccine dose.
- Returns from Developed Non-U.S. equities have been strong, beating their domestic peers during the month. Signs of faster growth in Europe, a weaker dollar, and more cyclical exposure within indices have helped push international markets higher. Value styles across most markets continue to shine with global recovery trends firmly in place.
- Markets have largely shrugged off any worries of rising inflation. Interest rates had little reaction to the latest release of the Consumer Price Index, which reflected prices increased by 4.2% on a year-over-year basis. Commodity prices advanced during the month, but the 10-year Treasury yield has stuck trading in a tight range between 1.5% and 1.6%.
- Cryptocurrencies showed their true colors in May, with the volatile nature of the digital assets on full display. Bitcoin declined by over 40% during the month as environmental concerns and government scrutiny triggered a steep correction.
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