Globally, YTD equity performance has been dramatically US-biased, but mostly in the first 5 months. Here recently all eyes have been on rates. The 10-year fell to its year-to-date low on April 6th at 3.28%. At quarter end, its value rested at roughly 4.61%. In less than six months, the yield on the 10-year Treasury note has risen by over roughly 133 basis points.
EPS estimates may help explain equity market strength in ‘23: Though off the highs forecasted roughly a year ago, ‘23 EPS estimates have increased slightly, encouraging equity markets to trade higher. However, it seems that few institutional investors are buying into this reversing trend, choosing instead to camp out in the largest, most liquid names that have worked year-to-date. This is proving to further exacerbate the lack of market breadth. The Magnificent 7 have contributed to 97% of the S&P 500’s YTD return.
View our full quarterly chartbook:
The video below includes some of our key takeaways from the quarter.
If we can support with any of your quarterly communication, please let our team know!
The opinions expressed during this Webinar are those of the Aptus Capital Advisors Investment Committee and are subject to change without notice. This material is not financial advice or an offer to sell any product. Forward-looking statements are not guaranteed. Aptus reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. More information about Aptus investment advisory services can be found in its Form ADV Part 2, which is available upon request.