MACRO OBSERVATIONS Inflation expectations have improved significantly, which encourages the Federal Reserve to slow the pace of future interest rate hikes. While energy, food, and labor costs remain a significant headwind to lower inflation, we expect this interest rate rising cycle to end in early 2023. Global economic growth should continue to slow, and the […]

MARKET REVIEW Despite the market’s terrible angst and performance in 2022, the major indices were all higher in the second half of 2022. In Q4, the S&P 500 returned 7.56% and the Russell 2000 Growth returned 4.13%. As anticipated, the Federal Reserve raised interest rates by 75 bps to 3.75 – 4.00% on November 2nd […]

MARKET REVIEW Despite the market’s terrible angst and performance in 2022, the major indices were all higher in the second half of 2022. In Q4, the Russell 2000 Growth returned 4.13% and the S&P 500 returned 7.56%. As anticipated, the Federal Reserve raised interest rates by 75 bps to 3.75 – 4.00% on November 2nd […]

MARKET REVIEW In 3Q22, the Russell 2000 Growth returned 0.24%, the Russell 2000 returned -2.19% and the S&P 500 returned -4.88%. In July, when investors believed the Federal Reserve might end its rate-raising cycle, the Russell 2000 Growth returned 11.20%and the S&P 500 returned 9.22%. In late July, the Federal Reserve raised interest rates 75 […]

MARKET REVIEW In 3Q22, the S&P 500 returned -4.88%, the S&P 400 Index returned –2.46%, and the Russell 2000 Index returned –2.19%. In July, when investors believed the Federal Reserve might end its rate-raising cycle, the Russell 2000 returned 10.50% and the S&P 500 returned 9.22%. In late July, the Federal Reserve raised interest rates […]

MACRO OBSERVATIONS Inflation remains stubbornly high, which encourages the Federal Reserve to set higher interest rates that impact risk assets. Global economic growth is slowing, and the inversion of the interest rate yield curve indicates a higher probability of a global recession. Dollar strength is weighing on U.S. equity markets, which will impact the corporate […]

MARKET REVIEW In 2Q22, S&P 500 Index returned -16.10%, the S&P 400 Index returned -15.42% and the Russell 2000 Index returned -19.25%. For the half year, the S&P 500 Index’s -19.96% was the worst performance since 1970. The 10-year U.S. Treasury bond market had its worst half-year since 1788. MACRO OBSERVATIONS 2Q22 was shocking in […]

MACRO OBSERVATIONS Historic global inflation continued to dominate the headlines in 2Q22. Year-over-year inflation in June 2022 was 9.1%, the highest level in 41 years. The inflation we are experiencing is due to a variety of reasons including supply constraints, component shortages, government regulations, environmental policies, energy supplies, food production costs, and transportation and logistical […]

MARKET REVIEW In 2Q22, the Russell 2000 Growth returned -19.25% and the S&P 500 returned -16.10%. For the half year, the S&P 500’s -19.96% was the worst performance since 1970. The 10-year U.S. Treasury bond market had its worst half-year since 1788. MACRO OBSERVATIONS 2Q22 was shocking in many ways. We saw daily atrocities from […]

MACRO OBSERVATIONS Wage pressure, logistical transportation, higher commodity prices, and supply chain constraints continued to hamper earnings and forward guidance for many companies. The pandemic and geopolitical conflicts continue to exacerbate global supply issues. We still expect to see some of these risks and pressures begin to alleviate, however the recovery has been delayed beyond […]