Stableford Market Commentary - October 2023
September Redux
October was much like September: Rates up, stocks down. But there was the added pressure of earnings results which weighed on stocks.???
Stocks reflect these earnings revisions quickly as they are indicators of future earnings power. The steep downturn during earnings is similar to October of last year when the market also fell.
Higher bond yields also weighed on equities.
Yields on 10-year U.S. Treasuries increased 36 basis points in August to 4.9%, just shy of their 46 basis point lift in September.?As we’ve noted previously, higher rates weigh on equities as stock prices reflect estimates of future earnings power. When future earnings are discounted back to today at higher rates they are less valuable.?
Overall, the Fed’s message is finally being heard.
Tighter financial conditions are impacting both stocks and the real world where higher interest rates are impacting auto loans, credit cards, and overall business conditions.?
The question is, where does it end?
The October Market Commentary will help explain what's going on.
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This market commentary was written and produced by Stableford Capital, LLC. Content in this material is for general information only and 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 in directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
S&P 500 INDEX: The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
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1 年That was a great article...on some level the market is always pricing in interest rates and other factors so I sometimes wonder exactly how much Fed rates affect stocks...I guess some stocks are more affected than others...What really interesting is how the transition from fossil fuels and even other monetary system like Bricks will affect the global demand for dollars and interest rates. With all of the changes, it definitely feels like we're headed for a decentralized economy at some point in the future.