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July 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     4.84% S&P 500    16.93%   Fixed Income Yields     1 year 2 year 5 year 10 year 30 year Municipals 3.01% 2.92% 2.61% 2.55% 3.57% US Treasuries 5.39% 4.90% 4.16% 3.84% 3.86%   Fidelity Government Cash Reserves Money Market Fund 4.88% Fidelity Money Market Fund Premium Class  5.06%   Happy 4th of July!  The market indexes rebounded well in the first half of 2023.  The S&P 500 is up 16.93%, while the Dow Jones Industrial Average is up just 4.84%.  The difference is primarily attributable to the significant outperformance of just seven stocks which comprise nearly 25% of the index: Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta.  Aside from Apple and Microsoft, these top names of the S&P 500 are not in the Dow Jones Industrial Average index.  As of June, these names have increased more than 80% on average, while over 70% of the S&P 500 underperformed the market, and more than 200 components have negative returns for the year.  Of the eleven economic sectors, four are negative for the year, while four are barely positive, and nearly all of the market’s outperformance has come from the technology, communication, and consumer discretionary sectors.  The market’s performance has clearly been very concentrated this year; but if a bull market is defined as being up 20% from its lows, then we have entered a new bull market. The equity markets continue to climb the “wall of worry.” ...