Investment Review - April 2022
- The equity market rose 3.6% in March, after twice reaching 2022 lows. Stock indexes posted gains across the board for March and the first quarter is off to a rocky start due to the Geopolitical backdrop and expectations for inflation; the S&P 500 rose 3.60% and the Dow Jones Industrial Average gained 2.32%, while the Nasdaq Composite rose 4.70%.
- The bond market had one of the worst quarters in decades, as the Federal Open Market Committee increased the Fed Funds rate by 0.25% in March, and the market expects further increases throughout the year. As interest rates rise, bond prices decline, which should create further opportunity in the Fixed Income market.
- The equity markets have a push and pull battle between the big picture economic factors swirling with potential pitfalls, while most businesses are extremely healthy on many fronts. This describes why we have seen such large swings month to month. Market disruption allows us to take advantage of opportunities as they arise. Welch & Forbes will continue to search for high quality assets that present strong long term investment dynamics for all clients, especially among disruption. During these times, owning the best businesses matters most.
Key Investment Statistics
Sources: Bloomberg LLC, FactSet, U.S. Department of Labor
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
For more information, call Ed Sullivan, Vice President, at 617-557-9800, or email him at esullivan@welchforbes.com.