First Quarter (Q1) 2023 Summary
- Stocks ended Q1 mostly higher, up for the second straight quarter even as worries rippled through the banking sector and the Fed hiked rates further. Some of 2022’s worst performing sectors like battered tech stocks led by a wide margin. The financial and energy sectors lost ground.
- Bonds were also positive in Q1 for the second consecutive quarter as longer maturity yields came down even as the Fed hiked rates. Corporate and high-yield bonds led.
- GPM stock portfolios posted solid results in Q1. Big rebound gains in our tech and consumer discretionary holdings and a meaningful contribution from healthcare and industrials, more than offset outsized declines in two financial sector stocks.
- GPM balanced portfolios performed very well in Q1 with gains in stocks and all bond component positions.
Brief Markets Recap
U.S. stocks were mostly higher in Q1 as the S&P 500 gained for a second straight quarter. Nasdaq was the standout, snapping a fourquarter losing streak and rallying the most since the second quarter of 2020. Bonds also posted gains for the second-straight quarter. Treasuries rallied as the yield on the two-year note fell ~35 bps to ~4.05% and the ten-year note yield declined ~40 bp to ~3.47%. The dollar index was down 1% after losing more than 7.5% in the prior quarter. West Texas crude lost 5.7%.