Executive Summary:
T h e B i g g e s t C o m p a n i e s D o m i n a t e 2 0 2 3 :Top companies like Apple and Microsoft make up a big part of the stock market and have driven returns this year while most others are flat or down.
Interest Rates Are Up: Higher interest rates make it costlier to borrow money. This is affecting businesses and people are spending less. It is good news for savers and investors who can now earn higher yields.
Better Opportunities Today: Despite challenges, there are opportunities to invest in companies at good prices. Smaller companies, in particular, seem promising today in anticipation of the next economic uptrend.
Jobs Market is Strong: Few people are without jobs, and salaries are rising faster than daily expenses for most people. This is a good thing.
Higher Near-Term Uncertainty Possible: The stock market could experience continued turbulence through the rest of the year, but we may be near a relief rally as interest rates stabilize.