U.S. core fixed income was slightly negative as the Fed continued to hike rates during the month. Equity markets saw positive returns in July. U.S. small cap equity led the way, as sentiment turned strongly positive on better-than-expected economic data, and REITs posted positive returns as offices saw a huge rebound during the month.

Crescent Wealth Management founder, Timothy Wyrobek named on Forbes and SHOOK Research lists of Top Financial Security Professionals 2023

In our 2023 Outlook, Goodbye TINA, we outlined three broad themes that were likely to influence markets in 2023 – continued volatility, moderating inflation and a bear market bottom. Our portfolio positioning remains similar, and we believe our exposure to high-quality intermediate duration fixed income, in particular, adds to the resiliency of our portfolios while also benefiting long-term returns based on higher overall yields. While many anticipated a recession in 2023, one has yet to materialize.

The S&P 500 continued its Q1 rally through June lead by a narrow band of securities. One of the most anticipated recessions of all time has yet to materialize, though risks are rising, and Q2 data continued the moderating inflation trend with the Consumer Price Index hitting 4% for the first time since 2021.

Fixed income markets were broadly positive despite rates moving higher during the month. Equity markets saw positive returns in June, and REITs posted positive returns in June amid a strong housing sector.

All eyes remain on Congress as the June “x-date” approaches.

Bond markets dragged lower during the month amid debt ceiling concerns and rising rates in the U.S. U.S. large cap equities were a bright spot, advancing on strong growth sector earnings and positive sentiment around artificial intelligence related constituents, and REITs traded sharply lower with office space occupancy remaining low and the residential real estate market beginning to cool.

We are honored to be named as one of Atlanta’s Largest Life Insurance Agencies by the Atlanta Business Chronicle for the second year in a row. We’d like to especially thank all of our partners, staff, and advisors who have been instrumental in our growth and success.

Bond markets saw modest gains in the month. Rates were rangebound within the U.S. in April, and the 10-year Treasury ended the month essentially where it began. U.S. Large Cap and International Developed equities outperformed on muted volatility and strong value sector performance and REITs posted positive performance on resiliency from the residential sector.

For many, 2022 was a year of resetting expectations. Public markets – both equity and debt – were faced with pressure as a result of persistent inflation and corresponding interest rate hikes. Investors were left with few places to hide as the market adjusted to the ramifications of a new era.

Fixed income markets were broadly positive as rates moved lower in the month. Despite the Fed raising interest rates, longer dated yields fell as uncertainty about the direction of the economy remains. Despite elevated volatility, most equity markets saw positive returns in March. U.S. large cap equity led the way, as mega-cap growth related stocks surged. REITs took a step back in March and jittery banking sector negatively impacted the space as many regional banks have large exposures to real estate.

Our Quarterly Considerations report includes data on First Quarter 2023 Market Themes, Economic Review, Asset Class Performance, Fixed Income Market, Equity Market, Real Asset Market, Diversification and Financial Markets Performance.

The recent events surrounding the failure of Silicon Valley Bank and Signature Bank, combined with the volatility in stock prices of other financial institutions, serve as stark reminders that the U.S. and global financial system is complex and ever-changing. These periods can be unnerving for investor psychology and can leave some wondering, “Are my investments and cash safe?”

While markets retreat, the shift in rate expectations show signs the end of rate hikes is near.

Interest rates rose as market expectations “caught up” with Federal Reserve projections. A strong jobs report and a January inflation reading that was higher than expected influenced the reset. Elevated inflation and a strong labor market were drivers of lower equity returns, as investors digested the data and expectations of further Fed actions grew and REITs took a step back alongside the broader equity market, weakness in office and lodging were large detractors.

Broad asset classes rose higher off 2022 lows on cooling pricing pressures and the possibility of a Fed pause. Equities abroad outperformed amid a declining U.S. dollar and higher than expected growth, and the U.S. debt ceiling has sparked conversation, however the need for a resolution will likely abate an insolvency crisis.

Fixed income investors benefited from declining intermediate and long-dated yields as inflation continued to ease off recent highs and market expectations grew for a Fed rate pause later in the year. Equity markets posted favorable returns in the month. A resilient labor market has helped support a “soft-landing” scenario but lagged effects of monetary policy remain to be seen and REITs had a strong month on the back of falling interest rates and general equity strength.

Our 2023 Financial Planning Guide is now available. It includes up-to-date information in areas including tax planning, education planning, saving for retirement, and more.

Our Quarterly Considerations report includes data on Fourth Quarter 2022 Market Themes, Economic Review, Asset Class Performance, Fixed Income Market, Equity Market, Real Asset Market, Diversification and Financial Markets Performance.

An upward move in bond yields, as continued tightness in the labor market stoked fears of further hikes, weighed on fixed income returns. U.S. equities were lower as broad layoffs and fears of a recession in 2023 induced negative sentiment, and energy prices led commodity markets lower in December amid weak European demand, while real assets drew down in tandem with equities due to weak sentiment.