- Continuing to be a topic of concern, inflation rose again, with the CPI posting an 8.6% annual increase.
- Responding to the latest inflation data, the Fed hiked short-term rates by 0.75%, clearly signaling that taming inflation is top priority.
- Final GDP data for the first quarter of 2022 reported the economy contracted by 1.6%.
- Although unemployment remained steady, Consumer Confidence dropped to 98.7.
Select economic and market data
Statistic (monthly unless noted)
|U.S. GDP (quarterly)||-1.6%||6.9%|
|Consumer Price Index Y/Y||8.6%||8.3%|
|2-Year Treasury Yield||2.95%||2.56%|
|10-Year Treasury Yield||3.01%||2.84%|
- Equities saw substantial declines in value across a broad spectrum of security types and indices, adding to negative YTD returns.
- Although both suffered equally in June, value continues to significantly outpace growth so far this year.
- The Energy sector lost nearly 17% in June; however, it remains the only S&P 500 sector with positive YTD returns, at 31.6%.
- Treasury rates rose across the maturity spectrum in response to the Fed rate hike, with rates on shorter maturities rising more than on long maturities.
- Most fixed income indices saw negative returns in June, deepening YTD losses.
- Neutrally positioned on equities while slightly favoring international over domestic for long-term returns.
- Maintaining shorter-duration fixed income structure as the rising interest rate environment is likely to persist.
- Finding value in select domestic equities while trimming outsized “growth” exposure.
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