It’s the first week of May and so far 2023 has been a good year for the markets. With 25% of this year already gone, I wanted to bring your attention to a few things:

• NASDAQ is up over 15%, a positive response to a very negative 2022.
• The Federal Reserve continues to raise rates, but at a much slower pace.
• Large Tech Growth stocks have had a comeback.
• Yields are the theme of 2023.
• Bonds did poorly in 2022 due to rising interest rates.
• Treasury yields have increased.

My idea for the rest of the year are similar to my thoughts at the beginning, only with more optimism. We will likely see more volatility and flat returns, which is why yields are something to pay attention to.

If the market is flat, but you have a 4%-5% yield, that may be your return at the end of the year. Inflation is coming down, but the job market remains robust. In our opinion, the chances of another 2008 devastating recession are low. We could have a soft landing recession instead, which is recession with good employment numbers. Overall, I’m cautiously optimistic.

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