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April 1, 2023

Dear Client:   Returns for the major stock indexes in 2023 and the current bond and money market yields are as follows:   Index YTD 2023 Dow Jones Industrial Average    0.38% S&P 500    7.03%   Fixed Income Yields     1 year 2 year 5 year 10 year 30 year Municipals 2.47% 2.41% 2.23% 2.28% 3.38% US Treasuries 4.59% 4.03% 3.57% 3.47% 3.65%   Fidelity Government Cash Reserves Money Market Fund 4.59% Fidelity Money Market Fund Class Premium 4.77%   The markets are off to a positive start in 2023.  The S&P 500 is up 7%, while the Dow Jones Industrial Average is flat.  We have had some reversion to the mean from 2022 among the economic sectors, as last year’s best-performing energy sector is down 5%, while the top performers (communication services and technology) have bounced well off their brutal 2022 lows.  Growth stocks (+9%) and value stocks (+4%) have also performed well year-to-date.  The bond market has gained slightly (+2%) after its worst year in history.  Though the S&P 500 index is still trading at the same levels as in April 2021, the markets seem to be gaining some momentum.  Despite the many uncertainties and concerns, we are encouraged by the market’s recent performance, now 17% above the October lows. Investors have undeniably had much to endure in recent memory; one year ago, the markets were rattled by the uncertainty of Russia’s invasion of Ukraine and rising inflation.  Before that, we had to grapple with the impacts left in the wake of the COVID response.  Now, the rapidly rising interest rates are exposing the age-old problem...