Monthly Market UpdateSubmitted by TLWM Financial on March 1st, 2023
After a strong start to the year February brought with it some volatility as the S&P 500 ended the month down about 2.5%, but is still up roughly 3.4% for the year. We were not surprised to see volatility, and think that we could see more choppiness in the months ahead as investors continue to digest recession risk and potential Fed policy changes.
The impact of these factors is not limited to stocks, but also affects the bond market. In February the 10 Year US Treasury Yield jumped from 3.52% at the beginning of the month, to 3.92% at month’s end. For perspective the 10 Year Treasury was yielding 1.83% at this time last year. (YCharts)
Below, we’ll highlight two key groups that are impacted by higher rates: