June 12, 2023 •Nathan Willis
Key Events: Crackdowns on Trump and Crypto
President Trump was indicted - the first indictment of an ex-president or candidate - on charges related to classified documents.
The SEC continued its crackdown on Crypto by suing Binance and Coinbase for violating securities laws.
More companies mentioned AI on earnings calls than any quarter in ten years, driving optimism over the technology.
Market Review: Entering a bull market
Driven by continued strong technology returns, the S&P rose 2.7% this week and is up 20% from its October low, indicating a new bull market.
Small cap stocks led the way, up 5%, while international and emerging markets stocks lagged. Bonds were steady leading up to next week’s Fed Meeting.
Outlook: Can the fed steer the ship?
Now that the market has recovered much of its losses, investors wonder where the path leads. The market expects the Fed to pause its rate hike campaign this week, marking a new phase in the Fed’s stewardship of the economy.
The success of this phase will depend upon the Fed’s ability to lead the economy through a slowdown into a new period of growth. This week’s chart looks at confidence in the Fed; confidence in the current Fed has dropped significantly since reacting slowly to inflation.
OneAscent does not make short-term bets on the Fed’s success steering the economy; portfolios include investments that are likely to perform well in a recession and others that are more likely to perform well during periods of inflation and strong growth. The common denominator is the potential for solid long-term gains.
Confidence in the Federal Reserve[1]
Navigator Outlook: June 2023
This material is intended to be educational in nature,[2] and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. OneAscent can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein.
[1] Source: Visual Capitalist The shift in the American public’s political values | Pew Research Center
[2] Market Returns reference the following indices: Large Cap – S&P 500, Mid Cap Growth – Russell Midcap growth, Mid Cap Value – Russell Midcap Value, Small Cap – Russell 2000, Developed – MSCI EAFE, Emerging – MSCI Emerging Markets, Aggretate – Bloomberg US Aggregate, High Yield – Bloomberg High Yield
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