Financial market news has been littered with doom and gloom over the last 15 months; however, the last six months has resulted in a very respectable rebound for the financial markets. The S&P 500 (a good measurement of the US Stock Market) has swelled by 15% (October 1, 2022 – March 31, 2023). While the Bloomberg Aggregate Bond Index (a good measurement of the US Bond Market) has posted a sound 4.89% during the same timeframe.
This has resulted in good news for investors’ portfolios. In fact, investors that have maintained a modest exposure to the equity markets have been rewarded with market returns in the mid-teens over the last six months. It is also pleasing to report this near term uptick in the financial markets has led to good news for investors reviewing their three-year annualized performance with those same modest stock portfolios reflecting returns in excess of 10% on an annualized basis.
As the disclaimer goes, “past performance is no guarantee of future results” however the financial markets have reminded us (once again) that strong financial markets often appear in trying economic conditions.
By Cody Allen, Senior Vice President