Investors entered Q1 2024 optimistic that the economy was headed for a soft landing, inflation would continue to improve, and the Fed would start cutting interest rates in March. Not only did the economy avoid a recession, it was a bit stronger than expected, albeit resulting in a more persistent. level of inflation. Equities
Q4 ‘23 started off on weak footing, as investors were concerned that interest rates would remain “higher for longer” due to the unexpected strength of the economy, but encouraging progress on inflation cooling throughout the quarter and Fed officials’ reaction to the data helped markets retain their momentum into the end of the year.
Investors entered the third quarter optimistic that the Federal Reserve had orchestrated a soft landing for the economy and would potentially start cutting rates by year-end, but enthusiasm abated throughout August and September, as the prospect of a sustained period of higher rates became more likely, with both stock and bond markets finishing the
Equity markets remained rangebound through mid-May as lingering regional bank stress and financial stability concerns kept sentiment in check, with the closure of First Republic on 5/1/23 marking the third mid-sized bank to fail in 2023, all within a two-month period and the second-biggest bank failure in US history. US debt limit negotiations brought
Quarterly Commentary is a quarterly view of the equities, fixed income and hedge fund markets from our Family Management specialists.