Midyear Review: Staying Focused as Markets Shift

The first half of the year has given investors plenty to process—from banking turmoil to a morphing yield curve to the debt ceiling debate. Those with diversified portfolios of equities and fixed income were in a good position to benefit from both assets’ advances at the year’s midway point, a welcome turn from last year’s broad declines.

US stocks began 2023 with gains. Inflation showed signs of cooling, and the Federal Reserve paused in June after a series of rate increases. Regional banks and their holdings came under increased scrutiny in early March, and several lenders were sold to larger banks as some depositors fled. Around this time, US stocks began a decline, only to resume their ascent weeks later. That rally was led by technology stocks, whose surge coincided with increased attention on artificial intelligence and its potential. Value stocks and small caps started the year with gains, but growth stocks and large caps overtook them in the second quarter through mid-June. The bond market rebounded after one of its worst years in decades.

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.