3Q 2023 Commentary: Drained

Summary

• The S&P 500 ended September down 3.3%, reinforcing September’s reputation as the worst month of the year for stocks.
• The Bloomberg U.S. Aggregate Bond Index, which ended the quarter down 3.2%, is down 15% over the past three years in the largest three-year decline in history.
• Strategic Petroleum Reserve inventories are at a 40-year low, the U.S. government deficit is swelling, and household pandemic-related savings are drained for most households, hinting at economic challenges ahead.
• Looking forward, the good news is that interest rates are higher and opportunities are emerging, meaning investors do not need to stretch for reasonable returns.

Read and download the commentary here.