Softening inflation and signs of the labor market slowing sent interest rates lower during the month. Market leadership shifted during the month as all eyes remain on the Fed and the possibility of a September rate cut, and REITs had a favorable month.

The U.S. Core Consumer Price Index fell throughout the quarter from 3.8 to 3.3 percent, the lowest since April 2021. Investors complacent in cash may miss potential total return opportunities in core fixed income, and concentration in U.S. large cap markets continues to support returns, with nearly half of the S&P 500 Index constituents underperforming during the quarter and generating negative average returns.

Despite continued volatility, fixed income markets posted positive returns as rates fell slightly during the month. U.S. markets were mixed in June. Concentrated leadership and hype around artificial intelligence benefitted large cap while small cap declined, and REITs were positive during the month on expectations of declining rates.

We are honored to be named as one of Atlanta’s Largest Life Insurance Agencies by the Atlanta Business Chronicle for the third 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.

Fixed income volatility continued in May as markets continued repricing expectations for the timing of Fed rate cuts in 2024. U.S. markets were positive in May, and REITs were positive during the month.

A fixation on the direction of interest rates continues to drive prices in the short term, including in May. However, we take this opportunity to step back from the short-term focus on rates and discuss the findings of our latest long-term study on the efficient allocation of active and passive investing. Notably, 92% of 10-year top-quartile managers spent at least one 3-year period in the bottom half of their peer group, highlighting that success is not linear.

Markets repriced in April on “higher-for-longer” rates pushing longer duration fixed income and duration sensitive equities lower. Escalating conflicts in the Middle East have led investors to question what impact expanded conflict may have on their portfolios. While these events capture our attention, their fundamental impact on markets tends to be short-lived.

Interest rates rose as market expectations for “higher-for-longer” Federal Reserve policy grew. U.S. equity markets fell in April as investors digested the greater likelihood of the Fed keeping its interest rate target elevated, and the rising interest rate environment and poor equity markets negatively impacted the REIT market during April.

The S&P 500 Index reached new highs in the first quarter and valuations moved higher. Profit margins have been trending lower as input costs (higher rates and higher wages) have moved higher. Fixed income valuations look favorable relative to equities and with expected rate cuts on the horizon, the expected return prospects for fixed income look attractive.

Fixed income markets regained some ground in March. Equity markets were positive across regions and continued their year-to-date climb higher, and REITs were positive during the month as interest rates remained range bound and the outlook for rate cuts later in the year persisted.

Fixed income volatility continued in February as markets repriced expectations for the timing of Fed rate cuts in 2024, going from five expected cuts to three, U.S. markets were positive in February, and REITs were positive during the month.

Markets were mixed in January, with U.S. large cap equities leading the way while non-U.S. equities and fixed income produced lackluster returns. Market sentiment shifted and optimism on the potential for a soft-landing grew. Economic data has delivered above expectations of late, but potential headwinds remain.

Interest rates rose slightly in the month on less dovish communication than expected from the U.S. Federal Reserve, contributing to modestly negative returns across fixed income. Equity markets were mixed during January, with concentration in U.S. large cap buoying returns and REITs, a rate sensitive sector, fell sharply to start the year on a less dovish U.S. Federal Reserve.

Our 2024 Financial Planning Guide is now available. It includes up-to-date information in areas including tax planning, education planning, saving for retirement, and more.

The “Recession of 2023” that was widely forecasted failed to materialize. Inflation has moderated, but likely remains in a “messy middle” range of 2% to 5%, and the narrow market leadership of U.S. technology stocks during 2023 has created potential opportunities in other segments such as U.S. small cap and non-U.S. equities.

Interest rates continued to decline in the month. Equity markets finished the year on a positive note, and U.S. REITs experienced favorable results as interest rates declined and the office sector rebounded from lows earlier in the year.

Markets rallied in November giving investors plenty for which to be thankful.

Interest rates fell sharply in the month as inflation moderated and the Federal Reserve reduced its hawkish tone. Equity markets around the world rebounded in November, and REITs rallied in the month alongside equity counterparts and pushed into positive territory year-to-date.

Crescent Wealth Management is pleased to announce Harlan Partners as its newest Affiliate Partner. This partnership brings an expanded scope of services in the financial and insurance industry, allowing the managing partners of Harlan to offer more sophisticated solutions to their clients.