A Summer Break for the Fund Rally?

Although equity funds were up in June, the gains were far smaller than in April or May. In bonds, high-yield funds showed surprising strength

As summer picked up steam, the stock rally cooled. With conflicting reports on the economy's health, stocks ended June with slight gains, a sharp contrast to the healthy advances posted in the prior two months. To spur stronger, steady economic growth and ward off deflation, the Federal Reserve lowered the key Fed funds interest rate on June 25 by 25 basis points, to a 45-year low of 1%.

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