While the story line for equities evolved during May 2023, the bottom line remained the same, as despite deteriorating market breadth, a handful of macro cap tech stocks enabled U.S. indices to close higher on the month. Hence, the S&P 500 (white line, right axis) exited May matching the price levels of mid-March 2022, back when the Fed initiated its series of rate hikes (red line, left axis). Washington’s end of month debt ceiling and spending agreement, plus the growing belief that a ‘not too hot, not too cold Goldilocks’ economic environment may be unfolding in the U.S. (jobs data last week), undoubtedly played roles in the positive outcome. However, it strikes us that the role of large systematic buy programs should not be underestimated.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.