Equity Commentary

Has Spring Sprung?
U.S. equities rose 7.2% during the quarter, posting the same quarterly return as that of fourth quarter 2022. Growth materially outperformed Value, 14.4% versus 1.1% respectively.

Economic & Market Overview

Stress Tests
In the first quarter there were numerous anxiety inducing factors for individuals and institutions to incorporate into their investing calculus. As the quarter began markets looked through the restrictive monetary policy of the Federal Reserve to the prospect of a soft landing for the economy and a reversal of rate increases that were the cornerstone of the Fed’s effort to reduce inflation.

Fixed Income Commentary

Interest Rate Volatility Spikes
Interest rate volatility surged during the quarter as bank failures caused an abrupt repricing to lower yields. The MOVE Index, the bond equivalent to the VIX Index, surged to its highest reading outside the 2008 recession.