2Q 2023 Market and Economic Overview

These have been good 􀆟mes for those who par􀆟cipated in 2023’s equity market rally. Such rallies can become self-sustaining, par􀆟cularly if investors fear that they may be missing out. A more sober assessment would suggest that not only have market returns been highly distorted by the dis􀆟nct outperformance of a few significantly-weighted names, but also that the macro environment remains highly uncertain. Beware of complacency. A recession may s􀆟ll happen, par􀆟cularly since Central Banks con􀆟nue to struggle to repress infla􀆟onary pressures and stand commited in their fight to quash infla􀆟on fully. Further 􀆟ghtening un􀆟l something breaks may well be the order of the day. Nonetheless, for as long as the economy is showing resilience and corporate earnings are holding at least stable, equi􀆟es can remain in vogue, valua􀆟on considera􀆟ons notwithstanding.