The MSCI World Healthcare NR Index gained 3.72% in July, outperforming the MSCI World NR by 1.93%. Markets were impacted by inflation figures, which again surprised on the upside. The employment situation continues to improve, to the point that several sectors are struggling to find the workers they need. COVID, particularly the Delta variant, has led to a new bout of volatility, with policymakers across the globe opting for diverging strategies to deal with this latest development of the pandemic.
Q2 2021 reporting is picking up pace as many companies will release their numbers in the next two weeks (last week of July and first week of August).
The MSCI World Healthcare NR Index gained 3.0% in June, while the MSCI World NR Index rose 1.5%. The decline in 10-year yields provided a booster shot to growth stocks, relative to their value peers. It is likely that the next months will continue to be dominated by debates on Fed and interest rates topics, and related growth/value factor pivots. More clarity on tapering can be expected after the summer break and the Jackson Hole summit.