The S&P 500 fell 16.1% during the quarter and is now down 20.0% year-to-date. Global equities posted steep declines in Q2, with the MSCI ACWI index falling 15.7% for the quarter. Year-to-date, the index has declined 20.2%. International developed stocks declined 14.5% in Q2, leaving its year-to-date decline at 19.6%. A stronger dollar detracted 670 bps from US$ returns during the quarter. Emerging market equities fell 11.5% in Q2 and 17.6% year-to-date. Asian emerging markets were the best performing region during the quarter as Chinese equities posted modest gains, while Latin American emerging markets struggled. Large-caps held up slightly better than small-caps during Q2 and year-to-date. For the quarter and year-to-date periods, value outperformed growth, particularly within large caps. The consumer staples, utilities and energy sectors held up the best during Q2, while consumer discretionary and technology struggled. Energy is the only sector that remains positive year-to-date.

Valuations improved during the quarter as prices declined. The trailing P/E ratio on the MSCI US Index fell from 23.1 to 18.9. International developed stocks remain more reasonably valued than US stocks, although the Russia-Ukraine conflict and its impact on energy and other commodity prices presents risks, particularly for Europe. Emerging market valuations remain more attractive than developed markets. Monetary policy remains highly accommodative in China, and reduced COVID restrictions provided a boost to activity in Q2.

The Bloomberg Aggregate declined 4.7% during the quarter. Treasuries declined 3.8%, but outperformed corporate bonds, which declined 7.3%. The yield curve shifted higher and flattened, with one-year yields rising 117 bps, while 30-year yields rose by 70 bps. The Fed raised its target rate 75 basis points in its June meeting amid persistently high inflation. This followed a 25 basis point hike in March and a 50 basis point hike in May. Overseas, the European Central Bank has pre-announced a 25 basis point July rate hike. The Bank of England announced its fifth consecutive 25 basis point rate hike in June. Monetary policy conditions in China and Japan remained loose.

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¹ The information found in this document was derived from Mercer, The Wall Street Journal and InvestorForce. While we believe these data sources and information to be reliable, its accuracy and completeness are not guaranteed. The views contained in this presentation represent the opinions of GYL Financial Synergies, LLC as of the date hereof unless otherwise indicated. This and/or the accompanying information was prepared by or obtained from sources GYL Financial Synergies, LLC believes to be reliable but does not guarantee its accuracy. The report herein is not a complete analysis of every material fact in respect to any security, mutual fund, company, industry, or market sector. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance does not guarantee future results.