Stokes Capital Commentary 2023 Q1
Global markets started the new year on a positive note with bonds and equities posting gains for Q1. A welcome reprieve from the sharp declines in both bonds and stocks last year.
The decline in bond yields and a possible end to the Federal Reserve raising interest rates were a key catalyst to the gains in equities and bonds for Q1. Indeed, the policy sensitive 2-Year Treasury yield dropped from 5.0% to 4.0% during the month of March and with Fed Funds at 5.0%, bond investors are pricing in interest rate cuts over the next two years