Most stock markets in the U.S. and around most of the world advanced in March, in very stark contrast to February, when almost all equity indices around the world declined markedly.There were a few days in mid-March that Wall Street and Main Street were really worried when the collapse of Silicon Valley Bank – the largest bank failure since 2008 – was announced. But investors mostly shook off the resulting spike in volatility after the Federal Reserve, the FDIC and the Treasury Department jointly acted to soothe markets.Consistent with U.S. markets, performance in developed markets outside the U.S. was good too – as 36 of the 38 developed markets tracked by MSCI were positive, with most gaining between 2-3%. Performance in the emerging markets tracked by MSCI was more mixed, however, with 35 of those 46 indices advancing in March.

As volatility subsides, 7 of the 11 S&P 500 sectors advanced for the month . Over every single time period, sector performance will be driven largely by factors one would expect, such as the overall state of the economy, underlying corporate earnings, current and predicted interest rates, and inflation, among other factors.

U.S. Markets Retreat in February Stock markets in the U.S. and around almost all of the world dropped in February, in very stark contrast to January, when almost all equity indices around the world advanced markedly. The DJIA saw the largest retreat as it ended February at its lowest closing level of 2023. Surprisingly, the growth names continue to outperform the defensive names, as the Consumer Staples and Utilities sectors, two historically defensive sectors, recorded their third straight monthly loss. Further, all the major indices gave back a big chunk of January’s gains – the S&P 500, NASDAQ and the Russell 2000 are dangerously close to moving negative YTD, while the DJIA is negative YTD. Consistent with U.S. markets, performance in developed markets outside the U.S. was cold too – as 37 of the 38 developed markets tracked by MSCI were negative, with most losing between 2-3%. Performance in the emerging markets tracked by MSCI was even worse, as 41 of those 46 indices declined in February, with most losing more than 5%.

October is historically one of the worst months for U.S. equity markets – but this October saw the best monthly returns in decades and the biggest October percentage gain since 1900 for the DJIA. The record-setting October was in stark contrast to most of the other months this year, as investors struggled with monthly declines in January, February, April, May, June, August and September – as most of 2022’s monthly returns have been red. In keeping with U.S. markets, performance in developed markets outside the U.S. was very good in October too – as 35 of the 37 developed markets tracked by MSCI were positive. Performance in the emerging markets tracked by MSCI was mixed, however, as only 26 of those 46 indices advanced.

Sector Highlights Through September 2022 For the month of September, sector performance was just terrible, as all 11 sectors declined for the month, with 5 of the 11 recording double-digit declines. And while nine months is not very helpful when trying to draw conclusions, it is interesting to see the difference a few months make, as investors were reeling in January when 10 of the 11 sectors were red; March saw 10 of the 11 positive; April and May saw a mixed bag; June was all negative; July was overwhelmingly positive; August was mostly negative and September was all negative. That’s volatility.

For the month of July, sector performance was very good, as 10 of the 11 sectors advanced for the month, with only Communication Services (-1.38%) retreating. Contrast that with the month of June, which saw all 11 retreat for the month. And while seven months is not very helpful when trying to draw conclusions, it is interesting to see the difference a few months can make, as January saw 10 of the 11 sectors red (with only Energy green); March saw 10 of 11 positive; April and May saw a mixed bag; June was all down and July was all up.

For the month of June, sector performance was poor, as all 11 retreated for the month. Contrast that with the preceding two months which saw mixed performance, as 6 of the 11 S&P 500 sectors were green in May and 4 of the 11 were green in April. And while six months is not very helpful when trying to draw conclusions, it is interesting to see the difference a few months can make, as investors were reeling in January when 10 of the 11 sectors were red (with only Energy gaining that month); March saw 10 of the 11 positive; April and May saw a mixed bag and June is all negative.

For the month of May – as was the case in April – sector performance was mixed, as 6 of the 11 S&P 500 sectors were green (versus 4 of the 11 in April). And while five months is not very helpful when trying to draw conclusions, it is interesting to see the difference a few months can make, as investors were reeling in January when 10 of the 11 sectors were red (with only Energy gaining that month), March saw 10 of the 11 positive and April and May saw a mixed bag.

For the month of April, sector performance was mixed, as only 4 of the 11 S&P 500 sectors were green, compared to 10 of the 11 last month. And while four months is not very helpful when trying to draw conclusions, it is interesting to see the difference a few months can make, as investors were reeling in January when 10 of the 11 sectors were red (with only Energy gaining that month), March saw 10 of the 11 positive and April saw a mixed bag.

When your tax refund arrives, you might be tempted to immediately spend it. But there are wiser ways to use your refund. See what we recommend.

April is National Financial Literacy Month – an entire month dedicated to underscoring the importance of learning, establishing and maintaining healthy financial habits. But ask yourself this: what have you learned about anything financial lately? Do most of your neighbors keep a household budget or save for retirement? Does your cousin live hand-to-mouth? Do you understand compound interest? Or know what the Dow Jones Industrial Average is? Is gold worth its own weight?

Markets Struggle in the Third Quarter - Global equity markets had a mixed third quarter, but when the final Wall Street-bell chimed on September 30th, global markets had not moved very much, despite the final month of the quarter turning in dismal results.

On Tuesday, the Conference Board announced that “the Consumer Confidence Index increased slightly in March, after a decrease in February. The Index now stands at 107.2 (1985=100), up from 105.7 in February. The Present Situation Index – based on consumers’ assessment of current business and labor market conditions—improved to 153.0 from 143.0 last month. However, the Expectations Index – based on consumers’ short-term outlook for income, business, and labor market conditions—declined to 76.6 from 80.8.”

For the month of March, sector performance was very good, as 10 of the 11 S&P 500 sectors were green, with half of those jumping more than 5%. And while three months is not very helpful when trying to draw conclusions, it is interesting to see the difference a couple of months can make, as investors were reeling in January when 10 of the 11 sectors were red (with only Energy gaining that month) and this month it was only the Financials sector that retreated – and it was just barely down for the month

The Millennial generation is the largest in US history and as they reach their prime working and spending years, their impact on the economy is going to be huge. On the other hand, a survey from Bankrate.com found that only 1-in-3 Millennials invest in the stock market (compared to about half of the population of Gen X'ers and Baby Boomers).