Q3 starts off at a weaker place than any quarter since WWII as a result of the COVID-19 pandemic, but with reopening has come optimism.

Despite multiple “worst-ever” indicators, U.S. equity and corporate credit markets rallied back to near pre-pandemic levels in Q2. With markets trending one way and economic data another, we’re left with mixed signals.

Economy on solid footing, but risks abound.

Economy on solid footing, but risks abound.

Optimism is stretching markets to new heights, but inflation is proving stubborn, limiting the scope of Fed rate cuts and putting upward pressure on rates.