We're pleased to present our market review for the 1st quarter of 2023. Here are the highlights:
- Stocks posted positive returns as investors gained optimism that the Fed is near the end of its tightening cycle. U.S. stocks were up over 7% (S&P 500), while international stocks did better, returning over 8%.
- Bonds also had strong returns, with the US bond market (Bloomberg US Agg Index) up almost 3%, reflect a decline in yields. Bond investors were heartened by signs that inflation has peaked, and the economy may slow down, ultimately causing the Fed to pause, or even cut rates later this year.
- While stresses did appear in the form of Silicon Valley Bank's collapse, and the resulting concerns about other regional banks' health, overall pessimism about a deeper recession appears to have lessened.
- Our advice for the quarters ahead? As always, stick to your plan and think long-term. If your goals haven’t changed, your investment approach should not either. You don’t have to know what’s going to happen next in the market. Nobody else knows, either. Markets aren’t always perfect but you’re much better off assuming the market is getting it right than trying to outguess it.
For a detailed analysis of market returns for the 1st quarter and more, please click here: Quarterly Market Review - 1Q 2023
David Rappaport, CFP®
David is the Co-Founder and Chief Investment Officer of Rappaport Reiches Capital Management. He acts as personal CFO to entrepreneurs and corporate executives, providing organization and clarity in their finances. Please connect with David below. He loves to talk about investing, financial planning, and Aspiritech, a non-profit hiring individuals on the autism spectrum.