Midyear Outlook: The Path Toward Stability 

The economy and markets made progress toward regaining balance in the first half of 2023. Now that we are beyond the midpoint of the investing year, we should focus on the theme of “path toward stability” that will carry us to the end of 2023.

Returning to normalcy and finding balance is what we hope to achieve by the end of the year, despite the challenges that we have seen in the first half of the year which included 3 large bank failures, a debate regarding the debt ceiling and yet despite market gyrations, the overall financial system seems stable and there are opportunities within.

On a positive note, we have had bright highlights come out of the first half of 2023 as well, which include:

• Inflation is under 5% in the US, significantly lower than its 8.3% level this time last year

• The fed funds rate is approaching its apex as the Federal Reserve (Fed) emerges from its aggressive tightening cycle 

• Global inflation has ticked down from its 8.7% high in 2022, and is following a slow descent to a projected 6.5% for 2023

As we head into the second half of 2023 with positive momentum, we are hoping to see even more highlights by the end of the year.

Click here to read the entire LPL Financial Research’s Midyear Outlook: The Path Toward Stability.

As always, our team at SFS is here for you as we progress forward

Did You Know?

Supportive Stock Market Indicators

• Two consecutive down years for the S&P 500 is rare, occurring only three times in the past 80 years- 1973-74, 2000-01 and 2001-02.
• The S&P 500 officially entered a bull market in June, It took 165 trading days to surpass the 20% qualifier for a technical bull market, marking the second longest period to confirm a new bull market in nearly 75 years. Forward returns after a bull market is confirmed have historically been strong. The S&P 500 has posted average gains of 18.9% 12 months after the index cleared the 20% threshold.
• Analysts have continued to underestimate corporate America’s ability to generate revenue, which grew 4% in the first quarter of 2023 compared with forecasts below 2%.
• LPL Research sees 4% revenue growth in 2023, even with minimal economic growth, because of the pricing power that has come with inflation.

Summer Fun at SPAC

The first Philadelphia Orchestra performance was held at Saratoga Performing Arts Center (SPAC) in August of 1966 and they are back yet again this year for numerous performances from August 2nd - August 19th. This season, the Philadelphia Orchestra will be presenting "Harry Potter and the Goblet of Fire TM in Concert, Beethoven's Seventh, Earth: An HD Odyssey, Jurassic Park in Concert and many more!

This month, SPAC is also bringing many other award-winning headliners! If you enjoy country, pop, classical or alternative music check out the entertainment you can see here locally at SPAC.

For more summer fun all around Saratoga Springs, take a look at Discover Saratoga's event calendar.

_{The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.}

_{The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.}

_{All investing involves risk including loss of principal. No strategy assures success or protects against loss.}

_{Past performance is no guarantee of future results.}