Although seemingly forgotten now, the second quarter of 2023 was almost derailed by debt ceiling concerns. However, in the 11th hour, a deal was reached, allowing the government to pay its bills for now. From a market perspective, this deal should be viewed as unquestionably positive as it takes the debt ceiling issue off the table until 2025.
2022 proved to be a particularly challenging year for investors. The market narrative was shaped by stickier than expected inflation which forced global central banks to raise rates at the quickest pace in history.
There’s a saying I hear around the grass fields of youth sports from time-to-time, usually from coaches looking to get the most out of their players before a big game; start strong, finish stronger. While stock and bond markets got the start strong part right in the 3rd Quarter of 2022, the finish left a lot to be desired.
After a strong rally through the second half of March, where the S&P 500 Index saw a strong gain of 8.56% from the mid-month bottom, selling in stocks resumed in April. There are a number of headwinds markets are dealing with at them moment, but the April selling was triggered primarily by what the market construed as a more aggressive Federal Reserve stance on interest rates and their attack on inflation, rising recession calls and concerns surrounding the lockdowns in China and the potential global economic impact.
As if investors needed more to contend with, having already been forced to digest the prospect of a hawkish Fed, higher interest rates, and stubbornly high inflation to begin the year, Russia did the unthinkable last month and invaded its neighbor Ukraine further unsettling an already skittish market.
After a remarkably strong summer for stocks, a slew of negative headlines hit the markets in September and U.S. equity benchmarks fell across the board in what is historically one of the worst-performing months for equities.
At the end of every quarter, The CFG Wealth Management investment team provides a Quarterly Market and Economic Commentary. This report focuses on what’s going on in the capital markets this quarter and provides our perspective and advice.
At the end of every quarter, The CFG Wealth Management Investment Team provides a Quarterly Market Commentary. This report focuses on what’s going on in the capital markets this quarter and provides our perspective and advice.