As the Federal Reserve increased rates frm essentially 0% to 5%, the bond market experienced a significant fall.

Gold is not a panacea. The shiny metal has not performed as well as stocks or bonds in the last 33 years but does act as a diversifier in portfolios.

Stocks sprang to new highs led by surprising economic resilience and strong corporate profits, while bonds experienced a modest downturn as interest rates rose after markets scaled back interest rate cut expectations.

Investors sought safety in cash following the 2022 bear market driving a record of $6 trillion in cash.

After a brutal 2022, investors were delighted in 2023 as markets were driven higher by a stronger-than-expected economy, falling inflation, and light at the end of the tunnel with respect to the Federal Reserve’s interest rate hiking cycle.

2023 stands in sharp contrast with 2022.

Equities soared during the month of November as softer-than-expected US inflation data strengthened investors’ belief that the Federal Reserve (Fed) was done raising interest rates.

Seeking to achieve the long-term equity return of 10% means sitting through all market cycles.

For the quarter, global markets were sent lower by rising interest rates and oil prices.

Economics is not a precise science. Central banks attempt to influence the economy through monetary policy (commonly by raising or lowering interest rates).

US equities rallied despite recession concerns and persistent challenges. In June, stocks entered a new bull market, up more than 20% from the October 2022 low.

After the dramatic events in the banking sector, many investors are worried about a potential recession, and for a good reason.

Stocks and bonds across the globe struggled in May. US equities eked out a small gain of 0.4%, led by a handful of technology stocks.

The clock is ticking on U.S. debt ceiling negotiations. Treasury Secretary Yellen informed Congress that cash balances are estimated to run out by early June, the so-called X-date.

Better than feared corporate earnings and a lower inflation report led market volatility lower and returns higher after the previous month’s bank crisis aftershock in developed markets.

Markets ended a volatile but positive first quarter, with gains in technology offsetting weakness in banks.

Inflation, the Federal Reserve’s (Fed) response to it, and recession fears led markets lower in February, reversing gains from January.

In its simplest form, banks gather deposits from clients (individuals and corporations), and they pay those clients a short-term interest rate.

Given the 102 times since WWII when policymakers have reached a consensus, we hope history is a guidepost that we will avoid a worst-case scenario of default, and any potential damage could be short-lived.

Last year was an exceptional year, and not in a good way. There was no shortage of worries during the year from COVID-19, the Ukraine war, and the most central story of all: inflation and interest rates.