Market Recap: June 2022

Market commentary

• 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

Equities

• 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%.

Fixed income

• 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.

Strategic outlook

• 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.