Following a better-than-expected start to the year, we entered Q2 optimistic but facing a great deal of continued uncertainty. Despite the challenges, markets remained resilient and finished the first half of 2023 strong.
The year is off to a positive (albeit turbulent) start, with U.S. stocks closing notably higher over the quarter.
A year ago, we were expecting 2022 to be “less remarkable” than its predecessor, but the past year saw more than its fair share of drama as we continued to navigate history in the making -- another year that won’t soon be forgotten, though many investors may want to.
The markets entered the third quarter of the year breathing a collective sigh of relief, kicking it off with a robust rally, amid solid corporate earnings and hopes that inflation had perhaps peaked. But the second half of the quarter saw a harsh about face, as continued inflation, additional interest rate hikes and escalating geopolitical tension weighed heavily on the market.
Markets had their worst first half of the year since 1970, leaving investors’ nerves on edge.
Concerns over the economic implications of the war in Ukraine brought chaos to the stock market during Q1, with major indices hitting “correction” territory (traditionally a decline of at least 10% from recent highs).