A. Second Quarter Review
US Market
The second quarter generated strong returns for US equities. In late June, the S&P 500 reached a new all-time high. Gains over the quarter were broad-based. The Federal Reserve’s (Fed) interest rate-setting meeting brought no change to policy, but its projections are now pointing to some small interest rate increases by 2023. Although these projections remain very tame, some market participants seemed to be caught flat-footed and market volatility increased late in the quarter. Fed officials immediately tried to allay any worries over the tightening of monetary policy. As we have reported to our investors, given the massive levels of global debt, the Fed is very limited in how much they can increase rates without setting off a significant recession/depression!
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