Category: insight
3 Min read | September 20, 2023

Market Monitor August 2023

  • Commentary
  • Market Monitor
Close-up of stock price graphs on a computer screen.

Markets cool in August.


Download full commentary


U.S. long-dated treasuries sold off

Long bond yields have steadily moved higher over the past few months. Although US inflation has fallen from around 9% to just above 3% over the last year, the yield on the 10-year to 30-year Treasuries continued to move up in August, reflecting an ongoing reassessment of the long-run neutral rate of interest, as the U.S. economy continues to prove resilient to higher rates.


Profit taking on strong quarterly earnings

Majority of companies beat consensus estimates in the second quarter earnings by a wide margin, as they were set at a very low bar prior to the start of the quarter. Given the strong market performance this year, valuations are on high end of the historical range and investors are already looking pass the weaker earnings in the near term and are banking on a rebound in earnings in the forward-looking earnings growth guidance.


Global growth expected to slow

Due to rising gas prices and base year effects, inflation may register higher levels in the near term, as large monthly declines from summer of 2022 no longer impact the 12-month inflation movement. However, inflation is expected to continue to go lower by year end, as rent and wage growth inflation are showing early signs of moderation.


Download full commentary

We also recommend reading:

3 Min read | Feb 22, 2024

Market Monitor January 2024
  • Commentary
  • Market Monitor
Read more

3 Min read | Oct 23, 2023

A Decade of Total Return: NEI Global Total Return Bond Fund
  • ESG
  • Impact investing
Read more

10 Min read | Dec 13, 2023

NEI 2024 Market Outlook
  • Commentary
  • Market Outlook
Read more

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This material is for informational and educational purposes, and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters. The views expressed herein are subject to change without notice as markets change over time. Information herein is believed to be reliable, but NEI does not warrant its completeness or accuracy. Views expressed regarding a particular security, industry or market sector should not be considered an indication of trading intent of any funds managed by NEI Investments. Forward-looking statements are not guaranteed of future performance and risks and uncertainties often cause actual results to differ materially from forward-looking information or expectations. Do not place undue reliance on forward-looking information.