After three quarters of improving economic outlook amid increasing expectations for a painless decline in global inflation, markets and pundits alike have become less optimistic about a soft landing as they reacted to frustration from the Fed. In an unfavorable scenario for stock and bond investors in a quarter with little fundamental change, economic worries increased while in ...
Market Perspectives
Building on Brilliance: Honoring Harry Markowitz and the Enduring Power of Portfolio Theory
In a quarter filled with talk of potential Treasury default and the second largest bank failure in U.S. history, markets chose to look forward. This was a quarter of AI captivating markets. The S&P entered bull market territory, catching up to international markets which had recovered earlier from the lows of last October. But for those of us who knew him, the events of the ...
Saving Private Banks
Despite continued geopolitical events and a potential banking crisis, markets remained focused on the economy and central banks’ attempts to control inflation. The quarter started with relative optimism after the lowered expectations of 2022 and nearly all asset classes fared well. Despite the failures of some midsized banks, and the buyout of Credit Suisse, markets have largel ...
Fed Up: Can the Fed Accommodate the Market?
2022 was a year of disappointment and negative surprises as economies faced the consequences of geopolitical turmoil and central banks fighting inflation. The result was a historic decline in global investment wealth. Statistically, 2023 is likely to be better. Market Performance A historic 2022 closed in a positive quarter with markets rising before falling in December. Duri ...