In spite of elevated inflation and rising interest rates, stocks turned in positive results in both Q2 and YTD across all market segments as shown on Table 1 of the attached report.
Notably this performance was led by a sharp rebound in growth-oriented sectors which had significantly underperformed in 2022. As shown in Table 2, the growth sector returns were led most dramatically by Technology, Consumer Discretionary and Communication Services, the very sectors that suffered the most last year.
Table 3 shows that even Fixed Income securities survived the most dramatic rise in interest rates in more than 3 decades with minimal damage.
We remain cautiously optimistic that a major recession can be avoided as economic growth has exceeded economic forecasts and equity valuations remain attractive.
A number of key questions remain unanswered but we are committed to effectively navigating through this difficult environment. Investors should remain diversified and patient.
As always, we thank you for your confidence in Pointe Capital Management.
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Your Pointe Capital Management Team