Carlson Quarterly – Q3 2023

September 30, 2023

Market Commentary

Following a robust second quarter, the stock market extended its gains into July, driven by strong corporate earnings and an expanding market multiple. However, the market reached its peak in late July, influenced by rising interest rates and a surge in energy markets, even as inflation data moderated. By the end of the third quarter, the market experienced a decline of -3.65%, with interest rate-sensitive sectors performing poorly while Energy emerged as the top performer. The dominant performance of the “Magnificent 7” growth stocks (GOOGL, AAPL, NFLX, NVDA, MSFT, TSLA, META) continued to support the market, while other segments began to correct. By quarter end, the S&P 500 had a YTD gain of +13.1%, in contrast to the equal-weighted version, which saw a modest increase of only +1.8%. This concentrated leadership is exacerbating the market’s decline as sovereign bonds undergo daily selloffs, pushing rates higher. Additionally, the U.S. Dollar maintained an 11-week winning streak creating a global liquidity squeeze. Any deviation from this trend could potentially alter the current market dynamics and ultimately create opportunities for discounted growth investments.

Advice Corner

Check out our 3rd Quarter articles for advice and insights on identity theft, inflation and estate planning.

  • Identity Theft: What It Looks Like + 8 Ways to Protect Yourself – Unfortunately, identity theft is up 584% over the last 20 years, according to Consumer Affairs. With so much business and banking done online, bad actors have numerous opportunities to steal sensitive information such as social security numbers (SSNs), data from social media profiles, credit cards, and bank accounts. Read our article for details and all eight tips for preventing identity theft.
  • Quick Guide to Inflation + How to Protect Your Assets – Inflation is the increase in prices of goods and services across the board. Although it often has a negative connotation, a little inflation is integral to a healthy economy. But when prices go up too fast or unexpectedly, it can throw a wrench in the works. So how can you protect yourself and your investments against inflation? Check out our top tips here.
  • What You Can Learn from Estate Planning Book “In Case You Get Hit by a Bus”In Case You Get Hit by a Bus: How to Organize Your Life Now for When You’re Not Around Later is one of our favorite financial books. In fact, we found it so valuable that our team decided to showcase it. In this article we not only share a few of the top financial and estate planning takeaways everyone should know, but also highlight some other items that many books or casual discussions on the topic don’t highlight.

For more information, contact the Carlson Team today!

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