1Q23 investment Markets Review
This post is our Q1 investment market review. In it you will find my thoughts on some areas of the markets, as well as links to resources to help you gain a better understanding of investing and the economy.
Our Thoughts
I heard a nice analogy to the markets yesterday as I was mowing the lawn an listening to a podcast: you can think about your investment like an amusement park. The stock market is kind of like the big roller coaster – lots of ups, downs, thrills and scares. That is where most of the noise comes from. The bond markets are more like the little choo-choo train that chugs around the perimeter of the park in a steady, non-thrilling kind of way. Not much noise from the little train.
At least that is what we’d expect to happen. In the first quarter, it did. The stock market had dare-devilish growth of around +7%, while the bond markets posted more modest, though respectable, movement of around +2%.
Interesting. Despite all of the news, hand-wringing and speculation about the economy, inflation or interest rates, the markets essentially behaved as expected (not that you should bank on +7% and +2% quarterly returns, as those are higher than the averages). To us, the markets behaved rationally. The amusement park was a good place to be!
The rest of this message includes links to learn more about the investment markets performance. I’ve posted a link to a report, AND brand new this quarter, a video tour of the report.
Detailed Market Performance – a read
To view a detailed analysis of investment performance in the US and global stock and bond markets, click on the button below.
The report is prepared by Dimensional Fund Advisors (DFA), our partner in investment management and client support. If you would like to find out more about DFA, you can visit their website directly at: https://www.dimensional.com/
Detailed Market Performance – a video tour
I have been experimenting with video lately alongside writing. I think it is a good complement to the written word. The following link is a 7-minute guided tour of the same investment report as linked above. This time with my voiceover. It’s too fast for you to read the report, but you may find the information more digestible.
The report is prepared by Dimensional Fund Advisors (DFA), our partner in investment management and client support. If you would like to find out more about DFA, you can visit their website directly at: https://www.dimensional.com/
Disclosures and end notes
Information contained within is generalized information about investing and the investment markets. It should not be considered investment advice, personalized or otherwise. Past investment performance should not be used as a predictor of future investment performance. Investing in markets carries an inherent risk of losing money.
