When 2023 kicked off, there were two storylines every economist, analyst, and financial advisor were keeping an eye on. Two potential crises that could upend the markets. I’m referring, of course, to the debt ceiling and the possibility of a recession. Today, six months later, I’m thrilled to announce that the first potential crisis has been resolved. There’s good news on the second one as well!
Between rising interest rates and a recent spate of bank failures, there’s a lot of uncertainty in the economy right now. This, in turn, has brought volatility back to the markets.
This is a short market piece for you in the form of a Q1 Recap. This letter covers how the markets performed from January through March, why the S&P ended the quarter up 7%, and what to look for moving forward.
A few days ago, I sent you some information about the collapse of Silicon Valley Bank and what it could mean for the markets. A lot has happened since then, so I thought a short update would be in order. Volatility in the banking industry almost always means volatility in the markets, and there has been a lot of both so far this week.