We pride ourselves on customizing investment portfolios for each client based on their respective circumstance, preference, tax situation etc. In addition, we maintain an independent, unconstrained, and overarching view on the market landscape, and publish our related insights on a quarterly basis. Please find a few selected examples below.
In stark contrast to 2022, both Equity and Fixed Income markets were higher for the first quarter of 2023, leading many to question if reports of the death of the 60/40 portfolio have been grossly exaggerated. Mean reversion fueled Equity strength, particularly in Large Growth names, while higher absolute rate levels, alongside peaking interest rates, buoyed Fixed Income performance.
Markets accelerated to the downside during the second quarter amid intensifying inflationary concerns, aggressive central bank tightening, and tumbling sentiment. On the heels of first quarter weakness, 2022 now has the dubious distinction of being the only time in half-a-century where both fixed income and equity markets suffered double digit drops during the first six months of the year.
Global investment markets were pressured for much of the quarter as early profit-taking and portfolio rotation gave way to broad-based selling amid the Russian invasion of Ukraine and intensifying inflation concerns. Notably, while gold and the dollar found support amid this flight Fixed Income suffered its worst losses in two decades as the 10-year US Treasury yield spiked to 2.5%.