*by Vicki Simpson, Research Analyst, CFP®*

While most markets posted positive returns, many may consider the first quarter of 2023 to be a bumpy ride. The SVB banking crisis created quite a commotion in both the bond and equities markets, but things settled, and markets recovered fairly quickly. We saw modest declines in inflation, but most consumers are still feeling the effects in their daily trips to the grocery store. The Fed continued its fight against inflation by raising interest rates; 0.25% at each of their meetings in Q1.

International stocks (EAFE) were the strongest performer among equities, followed by large US stocks as measured by the S&P 500. Growth stocks outperformed value and many tech stocks saw a rebound in Q1. Commodities were down largely due to the declining values in the energy sector. Volatility is expected as inflation persists, the interest rate battle continues, and recession lurks around the corner.