2023 Mid-Year Market Update

At the midpoint of 2023 most investment markets have trended to the positive and have reversed a portion of the declines from 2022.  Currently the major US and international stock indexes are nicely positive for the year range in returns from +4.9% for the Dow Jones to + 32.3% for the tech heavy Nasdaq.  Even the 10-year US treasury is up 1.8% year to date and other bond index are slightly positive as well.    This is all very welcome.   As the year moves forward our markets will continue to closely monitor the mood and policies of the Federal Reserve, interest rates / inflation as well as corporate earnings and consumer spending.   Many expect the Federal Reserve, which has slowed the pace of interest rate increases, will stop raising rates by year end and that the pace of inflation will also continue to trend lower.  These would be positive signs, however there are questions about the strength of corporate earnings and consumer spending as the effects of higher costs and high interest rates affect both businesses and consumers budgets.  While a recession has been forecasted for some time now (without coming to fruition), it is important for investors to stay on guard by rebalancing and monitoring risk levels as markets rise.  Looking back just 2 years (July 2021 – July 2023) the Nasdaq and the Dow are still below their levels reached at that time and the S&P is only slightly positive.   As stated in our previous update, we are still seeing good opportunities in cash / cash alternatives and fixed income markets.   Included in our service to you we are constantly reviewing data and research to create our recommendations and market view for our clients.  One of those sources is our own Wells Fargo Investment Institute.  While our views don’t always align with theirs, we have attached their current Market Outlook as we believe it does a good job of discussing the current state of the markets in more detail. 

In closing, as your trusted financial advisors, we continuously strive to enhance our services and provide you with the best possible experience. We are pleased to announce the recent expansion of our team to better serve your needs.   Additional details will be coming soon, but in the meantime please review the attached contact page for our most current contact information. 

Thank you for entrusting us with your financial well-being. We wish you a happy and healthy remainder of 2023.

Respectfully,


The Miller Shifflett Wealth Management Group of Wells Fargo Advisors
Timothy G. Miller, CFP®, First Vice President-Investments
Erik E. Shifflett, CFP®, First Vice President - Investment Officer


* https://www.spglobal.com/spdji/en/indices/equity/sp-500/#overview

 
The opinions expressed in this communication are those of the author(s) and are not necessarily those of Wells Fargo Advisors or its affiliates.

Index returns are not fund returns. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.

Wells Fargo Investment Institute, Inc. is a registered investment advisers and wholly-owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.

The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors or its affiliates. Any market prices are only indications of market values and are subject to change. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.
Diversification does not guarantee profit or protect against loss in declining markets.
Dividends are not guaranteed and are subject to change or elimination.
Wells Fargo Advisors is not a legal or tax advisor. However, Financial Advisors will be glad to work with you, your accountant, tax advisor, and/ or laywer to help you meet your financial goals  CAR#0723-00961