Market Comments

The third quarter saw continued strength in financial asset returns, as economic data continued to show stable employment and gross domestic product growth amidst a slow, steady decline in reported inflation.

Driven by the insatiable investor demand for all things relating to Artificial Intelligence (AI), the S&P 500 index posted a solid second quarter and finished the first half of the year up 15.3%

The U.S. equity markets extended the late 2023 rally through 2024’s first quarter.

Federal Reserve Bank interest rate policy continued to have a disproportionate impact on the U.S. stock market over the final quarter of 2023.

Federal Reserve Bank interest rate policy continued to meaningfully impact the U.S. equities markets.

During the first half of 2023, the broad stock market indexes regained most, but not all, of the losses experienced in calendar 2022.

The focus of the financial markets during the first quarter of 2023 remained on the Federal Reserve Bank’s interest rate policy.

Twelve years after the financial crisis ushered in an era of low interest rates, low inflation and exceptionally high real (net of inflation) equity returns, a year of reckoning finally arrived.

The U.S. equities markets closed the third quarter at the lows for the year. With all the major equity indexes down over 20% from their peak, we are officially in a bear market.

The second quarter of 2022 was a difficult period for both stocks and bonds as the Federal Reserve, faced with unacceptable high inflation reports, lifted interest rates in June by 75 basis points. This was the highest rate increase implemented since 1994. The credit markets anticipate another 75 basis point increase later this month.