Seamark View

INVESTMENT MARKET OVERVIEW

2nd Quarter, 2023

Prepared by

R. William Blasdale

July, 2023

 

Here are the indices that we typically review (please see Note #1 below):

                                                                                                                                                                                                      6-mos

                                       Blackrock iShares Indices                                                2022 %                                                     2023%

Russell 1000 (Domestic Large Cap):

-19.13

16.54

        Russell 1000 Large Cap Growth

-29.31

28.92

         Russell 1000 Large Cap Value

                             -7.74

 5.05

Russell 2000 (Domestic Small Cap Stocks):

-20.48

 8.09

          Russell 2000 Growth

-26.26

13.52

          Russell 2000 Value

-14.75

 2.53

Russell Mid Cap

-17.47

 8.98

          Russell Mid Cap Growth

-26.90

15.88

          Russell Mid Cap Value

-12.68

  5.16 

MSCI EAFE (International Stocks):

-14.25

                       12.49

MSCI Emerging Markets:

-20.56 

                        5.20

Fixed Income (Core US Aggregate Bond):

-13.02

                        2.26

Fixed Income (National Municipal Bond)

  -7.35

  2.25

 

 

 

 

 

 

 

 

 

 

 

 

                                               

 

 

 

 

 

 

 

 

The trends we observed in the 1st quarter have continued.  Once again, the “growth” style of investing has soundly trounced the “value” style.  The major “growth” drivers have been the technology stocks, and the “value” drivers have been the traditional “steady Eddy” stocks - banks, utilities, etc.  Bank stocks - particularly those of the small regional banks - have been hit by the turmoil caused by the collapse of Silicon Valley Bank, Signature Bank and First Republic. Fortunately, the larger “money center” banks appear to be doing well, although their profits have been depressed.

All that being said, it was a good quarter and a good first half of the year.  And that trend has continued into July, as I write this Overview.  Despite what you may have heard, and despite what may seem like outrageous prices in the grocery store and at the gas pump, the economy is doing surprisingly well. The latest Consumer Price (CPI) data showed inflation running at a rate of 3% year over year - far below earlier figures. Gross Domestic Product (GDP) is growing at a rate in excess of 2%, and corporate earnings estimates are increasing.  And there’s still lots of liquidity left in most consumers’ bank accounts. 

The real question, as always, is what does all this portend for the future?  While these predictions are always tricky, it looks like the FED has - for the moment, at least - engineered the much-desired “soft landing,” where inflation is under control and the risk of recession is receding.  “Mr. Market” seems to be buying into this scenario, anticipating that interest rates won’t go much higher and the economy will react positively.  While we all hope that this scenario will play out, there are no guarantees, and we still live in a complicated, dangerous world.

As always (and I’m sure you’re probably tired of hearing me say this), our approach to uncertainty is to pay careful attention to overall asset allocation, diversify our portfolios, and utilize proven, straight-forward investment vehicles.  We have recently worked with you to rebalance and reposition your investments where necessary.  We are continuing to monitor the “growth vs value” allocation in our domestic equity portfolios and may consider some slight “fine-tuning” as we proceed through the 3rd quarter.  On the fixed income side, we are continuing to extend the maturity of our bond funds as our shorter-term investments mature. 

Please contact us at any time with your questions and/or concerns.  As always, Lynne and I remain deeply appreciative of your continued confidence.

And once again, in closing, a brief word of warning: “phishing” scams (where you receive a text, email or phone call purporting to be from your bank, internet provider, etc. and requesting you to “sign here” or “click this link”) are proliferating. NEVER EVER DO IT!!  If you think it may be legitimate, call the provider at the number on your most recent statement and check to see if it’s real.

R. William Blasdale

July 20, 2023

Note #1:                  We are now reporting the various indices using the corresponding iShares ETF’s from BlackRock.  We believe that this

                                is a better representation of actual returns that an investor could achieve. In most cases, they are very close to the

                                respective indices.

 

DISCLOSURES

This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes the judgment of Seamark Financial Services, Inc. (Seamark) as of the date of this report and are subject to change without notice.

Additional information, including management fees and expenses, is provided on Seamark’s Form ADV Part 2. As with any investment strategy, there is potential for profit as well as the possibility of loss.  Seamark does not guarantee any minimum level of investment performance or the success of any portfolio or investment strategy. All investments involve risk (the amount of which may vary significantly) and investment recommendations will not always be profitable.  The investment return and principal value of an investment will fluctuate so that an investor’s portfolio may be worth more or less than its original cost at any given time.  The underlying holdings of any presented portfolio are not federally or FDIC-insured and are not deposits or obligations of, or guaranteed by, any financial institution. Past performance is not a guarantee of future results.

Presentation is prepared by: Seamark Financial Services, Inc.

(508) 758-6159 www.seamarkfinancial.com Copyright © 2016, by Seamark Financial Services, Inc.

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