Posts by Highland

Summary With 2022 in the rearview mirror, a year one would like to forget, markets in January kicked off afresh with positive returns across asset classes. The first inflation news for 2023 showed a continuation of the recent easing trend, as December’s Consumer Price Index (CPI) of 6.5% marked the lowest 12-month change since late…

Summary Markets closed out a difficult year by finishing lower in December. After a late year rally, stocks slid, with the S&P losing 5.8 percent for the month. The Federal Reserve raised rates by 50 basis points mid-month, a slight reprieve from the series of 75 basis point moves earlier in the year and bond…

Summary Stocks and bonds were broadly positive in November as inflation slowed, with the Consumer Price Index (CPI) coming in at +7.7% year-over-year and below market expectations (+8%). Treasury yields declined and stocks rallied, as investors took the positive inflation surprise as a signal that the Federal Reserve would likely begin scaling back their tightening…

Summary With macroeconomic news continuing to dominate the headlines in October, investors became comfortable with rotating back into riskier assets, pushing domestic stock indexes higher. In anticipation of another Fed rate hike in November, Treasury yields rose. Inflation (high), unemployment (low), and growth (positive) data provided a cushion for policy makers wary of causing a…

Summary Markets concluded a volatile third quarter with another negative month. The steady drumbeat of stubborn inflation, rising interest rates, and underwhelming earnings led to selloffs across risk assets. Many major indexes were plumbing new lows for the year by the close of September. Rhetoric was not encouraging, with the Federal Reserve remaining steadfastly committed…

Summary On the heels of a July that was as hot as the temperatures outside, markets entered August seeking to maintain positive momentum. But after a choppy start, equities faded and interest rates shifted upward, leading to losses for most major stock and bond indexes. While inflation fell, aided by a steep drop in energy…

Summary July brought a sizeable rebound for both stocks and bonds as mixed news and cloudy economic outlooks gave way to optimism, with equity markets and interest rates rallying to the end of the month. The month began with more tough inflation news as the June CPI exceeded 9%, and while corporate earnings for the…

Summary Investors entered June with optimism, the previous month had provided hope that inflationmay be easing, perhaps giving the Fed some breathing room to slow the pace of thetightening cycle, and markets had produced positive returns in May. Perhaps the worst wasover? Instead, it was more bad news, as inflation came in higher than expected,…

Summary After a dismal April, and a late May rebound, U.S. markets ended May almost flat. Developed equities shrugged off global recession concerns to rally strong into month-end, erasing earlier losses. Emerging markets continued to be weighed down by China’s aggressive COVID lockdown measures. Interest rates reversed trend and declined in May, giving bonds their…