Market Commentary: Bird's Eye View for Q3 2023
Equity investors have enjoyed a strong first half of the year even as concerns about the economy persist, says EverNest Managing Partner Frank J. Esposito in this 6-minute video market update.
Watch the video for Frank’s analysis of:
The stock market’s performance year to date. Just five firms of the S&P 500 now represent 24% of the index’s value. Such leadership by technology firms has been supported by early high expectations of artificial intelligence. Also supporting risk assets overall was liquidity added to markets by the U.S. Treasury seeking to stem bank failures. The strategy has succeeded so far, comments Frank.
Opportunities and risks ahead. At the midpoint in the year, valuations of the U.S. market are well above their long-term average. Looking ahead, Frank and team will be focusing on attractively priced opportunities offering solid growth. This includes in smaller capitalization stocks and in developed non-U.S. markets where stocks are undervalued. Despite continued strong jobs data, the economy is still at some risk of a recession, Frank says, noting five recession indicators are still flashing red.
