The S&P 500 recorded its biggest monthly gain since July 2022 and currently trades less than 5% below its all-time closing high. The NASDAQ 100 Index gained +10.8% as mega-cap growth stocks such as Microsoft, Apple, and NVIDIA traded toward new all-time highs.

The Leading Economic Index (LEI) declined for the 19th consecutive month in October, the longest streak since the 2008 financial crisis. It was also the LEI's lowest reading since May 2020. While the LEI indicates the growth rate is slowing, the Coincident Economic Index (CEI) continues to trend higher and sits at an all-time high.

The stock market continued to trend higher this week following Tuesday’s release of the Consumer Price Index (CPI), which showed progress on the inflation front. The release of the Producer Price Index (PPI) followed, showing that final consumer demand declined. This progress may allow the Federal Reserve to be less restrictive with monetary policy.

As we approach the end of the year, investors with significant capital gains or losses may consider a tax-loss harvesting strategy. Tax-loss harvesting offers tax advantages, but there are special considerations.

Last week, the U.S. Treasury announced its updated borrowing estimates and projected issuance for the next two quarters as the Fed holds interest rates steady. Meantime, at the halfway point of the third quarter earnings season, nearly 80% of the reporting S&P 500 companies had posted better-than-expected profits.

Navigating this cycle is particularly challenging due to its complexities. While macro historically matters over the long term, markets can diverge from macro in the near term. Seasonality is historically a tailwind when the S&P 500 is up through October, which historically has shown a 90% win rate.

The S&P 500 gained more than 20% through the end of July but has since declined 8.3% over the past three months, bringing its year-to-date gain to 10.6%. A significant factor behind the recent equity market sell-off has been the sharp rise in interest rates.

If you have ever thought of investing, one of the terms you’ve probably heard is “diversification”. This article will explain what diversification is, the benefits of creating a diversified portfolio, and coincidentally, its drawbacks.

US Gross Domestic Product (GDP), Durable Goods, and Home Sales underscore the economy's resilience despite the S&P 500 closing at 4,117, below more than 10% its recent peak in July.

Equities traded lower this week, with US large and small caps stocks producing similar returns while the Nasdaq underperformed. We expect quantitative tightening to continue for the foreseeable future.

Equity markets displayed a willingness to overlook geopolitical tensions this week, with investors focusing on monetary policy back home. A central theme was the debate over the recent surge in Treasury yields and how the subsequent tightening of financial conditions will impact the Fed's policy stance.

Stocks and bonds were both impacted by a chain of events during the third quarter. It started with rising oil prices, which caused inflation to re-accelerate in August. Here we recap the third quarter, discuss the rise in oil prices and interest rates, and look ahead to the fourth quarter of 2023.

Investor sentiment has remained upbeat throughout 2023. Financial markets have rebounded from their 2022 sell-off, with the S&P 500 gaining more than 15% and credit spreads tightening. The Fed's tightening cycle is nearing an end, and its impact has been limited thus far compared to prior tightening cycles.

The August market action is a continuation of the primary trend we have seen this year. The market remains fixated on the Fed’s next move, including how high the Fed will raise interest rates and whether it will cut interest rates in 2024.

In August, the Consumer Price Index (CPI) rose 0.6%, following a 0.2% rise in July (Figure 1 ). It was the biggest monthly increase in 14 months, with the recent surge in gasoline prices accounting for more than half of the rise. Excluding food and energy, the index rose 0.3%, compared to 0.2% in July.

The August market action is a continuation of the primary trend we have seen this year. The market remains fixated on the Fed’s next move, including how high the Fed will raise interest rates and whether it will cut interest rates in 2024.

The U.S. consumer plays an important role in the economy, accounting for almost two-thirds of U.S. GDP. However, consumer spending has steadily trended lower since July 2022, with the Johnson Redbook Index experiencing a relatively rare year-over-year decline in July 2023.

The S&P 500 extended its winning streak to five months in July, bringing its year-to-date total return to 20.5%. The S&P 500 has now recovered most of its losses from 2022 and is currently trading less than 5% below its all-time closing high set in January 2022.

Investors can earn income in one of two primary ways – dividends paid on stocks or interest paid on bonds. As of July 11th, only 51 companies in the S&P 500 paid a dividend yield above the yield on a 5-year Treasury bond.

A year can make a big difference. One year ago, the market was trying to catch its breath after a chaotic start to 2022. We review the second quarter, recap the strong start to 2023, and discuss our outlook for the second half of the year.