Welcome to June! We hope it is sunny where you are located.
Here are the main takeaways for the month of May:
- Equity returns continued their positive direction from April (Jan, Feb and March were mostly negative). One of the common questions we hear is why the stock market is so positive while the news about the economy seems so negative. It is important to remember the market is not the economy and vice versa. The market is a forward-looking mechanism where investors take bets on companies and the economy. It is common for markets to move up before a recession has ended.
- All indexes were positive for the month with the exception of US REITS (-0.6%), LT Treasuries (-1.7%) and non-US FI hedged USD (-0.1%).
- Domestic small cap growth (+9.4%) led the way with equities with Intl small cap (+7.1%) following close behind. Small caps outperformed large caps both domestically and internationally.
- On a YTD basis, all equity benchmarks shown are still negative with the exception of large cap growth. Similarly, all fixed income benchmarks shown are positive on a YTD basis with the exception of high yield, which we know is generally more correlated with equities than fixed income.
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As an additional note, please keep in mind that these reflect historical performance of the current models, not necessarily how accounts were invested in the past.