Market Digest \u2013 Week Ending 6\/28\r\n\r\nWashington was more interesting than Wall Street this week, with meaningful developments in the future of affirmative action, gay rights and immigration. Stock and bond markets were calmed by global central bank leaders' assurances that tightening conditions and higher short rates are a ways off. Also, China\u2019s central bank signaled it was attempting to end to a cash crunch in the banking system by injecting cash into some institutions. Stocks and bonds finished the week up modestly. Gold continued to plummet.\r\n\r\nWeekly Returns:\r\n\r\nS&P 500: 1,606 (+0.9%)\r\n\r\nMSCI ACWI ex-US: (-0.3%)\r\n\r\nUS 10 Year Treasury Yield: 2.49% (-0.04%)\r\n\r\nGold: $1,229 (-5.0%)\r\n\r\nUSD\/EUR: $1.301 (-0.9%)\r\n\r\nMajor Events:\r\n\r\n \tMonday \u2013 The US Supreme Court avoided a ruling on whether a race-conscious admissions program at the University of Texas at Austin should receive constitutional scrutiny, effectively deferring the issue.\r\n \tTuesday \u2013 The Chinese central bank announced it had injected liquidity into some institutions, eliminating fears the government would be more radical in its attempts to deflate asset bubbles.\r\n \tTuesday \u2013 The S&P\/Case-Shiller index of property values increased 12.1 percent from April 2012, the biggest year-over-year gain since March 2006.\r\n \tTuesday \u2013 Bank of England Governor Mervyn King said stimulus will remain in place for the immediate future, attempting to reduce fear about the potential for tighter policies.\r\n \tWednesday \u2013 The Supreme Court dramatically advanced gay rights in rulings that direct the federal government to provide equal treatment to same-sex spouses and allow the resumption of gay marriages in California.\r\n \tWednesday \u2013 US Q1 GDP growth was revised down to 1.8%.\r\n \tThursday \u2013 The Senate approved an immigration bill that would increase border security and provide millions of illegal immigrants a path toward citizenship. The bill is expected to face a difficult test in the House. \r\n \tFriday \u2013 Reports indicate that Google is developing a videogame console based on its Android operating system.\r\n\r\nOur Take:\r\n\r\nCentral banks globally made a concerted media effort this week to ease market volatility unleashed by Bernanke\u2019s June 19th announcement that the Fed bond buying program could be reduced in the second half of 2013 and wound down as early as sometime next year.\r\n\r\nIt seemed to work, as stocks finished the week modestly higher and the bond market stabilized. We believe the bankers are telling the truth and expect stimulus will be removed slowly and cautiously. Whatever the official mandates, central bankers are judged day to day on many things. One of them is capital markets behavior. Another big bear market would not make anyone happy.\r\n\r\nThe Supreme Court and the Senate were busy this week. As a necessary consequence of the financial crisis in 2008, the government was forced to play a bigger role in all of our lives by inserting itself into our major financial institutions. We generally avoid commenting on political issues, but it was nice to see that there is still desire in various branches of our government to be less heavy handed in general.