I can’t think of any two words that better describe equity markets in the U.S. so far this year. After big losses in both stocks and bonds last year, optimists hoped we would soon see markets recover as both inflation and interest rate hikes were going to end. Pessimists expected continued tough market conditions driven by tightening monetary conditions, continued interest rate hikes, a softening economy, and the likelihood of a recession. Who missed the mark so far this year?
Markets today are flashing that “caution” signal: equity market valuations are high, interest rates are more likely than not to be hiked a
few more times, inflation does not seem to be whipped now and there are a lot of geopolitical areas of concern.
Our February 2023 Market Commentary and review provided by provided by Peter W. Tuz, CFA, CFP®, President & Director, Portfolio Manager, Chase Investment Counsel.