Despite the volatility created by the Brexit vote, equity markets in June managed to post the fourth consecutive month of positive returns. The S&P 500 increased by 0.26% for the month. Value stocks increased and growth stocks retreated somewhat during the month as more defensive stocks came into favor. Developed international markets struggled, decreasing by 3.56% for the month. Interestingly, emerging markets led the pack and increased by 3.3%.

The U.S. fixed income markets once again provided positive returns. Interest rates continued to decrease and the 10-year Treasury yield approached all-time low levels that were established in July 2012. In the early morning hours after the Brexit vote, the 10-year traded just below 1.4% (1.38% is the record low) before selling off somewhat to close the month at 1.49%. To put this in perspective, the 10-year was at 1.84% at the end of May and 2.27% at the beginning of the year! The Barclays Capital U.S. Treasury Index increased 2.21% in June, while the Barclays U.S. Corporate High Yield Index increased by 0.92%. The Barclays Aggregate Bond Index increased by 1.80%.

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Past performance is not indicative of future results. This is not financial advice or an offer to sell any product. Clark Capital Management Group, Inc. reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. It should not be assumed that any of the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein. Clark Capital Management Group, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Clark Capital’s advisory services can be found in its Form ADV which is available upon request.

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