July 2022 performance update
Hi friends, here with results from last month:
Prime: +6.20%
Select: +8.49%
SPY ETF: +9.41%
Bogleheads (80% VTI, 20% BND): +7.98%
July was a fantastic month for U.S. equities overall—the best since November 2020. Both Prime and Select benefitted from the tailwinds. The tech-heavy Nasdaq returned over 12 percent, which helps rationalize the outperformance of the also-tech heavy S&P 500 relative to Prime and Select.
It is too early, I think, to call the current environment an inflection point as there are lots of indicia that investors may in fact be re-rating forward earnings expectations downward. To the extent that plays out, prices will need to come down further yet to bring multiples in line with the baseline average for the market overall. Let’s hope it doesn’t come to that.
