Market Recap:
After congress reached an agreement to increase the debt ceiling in early June, the stock market took off to finish the second quarter strong. The market has been led upward this year by a few tech companies driven by the potential of Artificial Intelligence. Unfortunately, that has driven growing divergence between those top companies and the rest of the market. In the S&P 500, the index weighted by market cap (normal) was up over 8% since the end of March, while the equal weight index over the same period was up less than half that. That discrepancy is showing the pricing power and influence the largest companies are having in the market. Interest rates and bond prices continue to swing along with anticipation of Federal Reserve (the Fed) interest rate hikes as a result of inflation related data. While the Fed did pause rate increases in June, it is widely anticipated they will raise rates one to two more times yet this cycle. There’s no way to tell for certain where (and when) the economy and markets are headed, but there is plenty of data to support the wide range of opinions that exist right now.
Your Retirement Plan Support Team:
Freestate Advisors serves as the advisor for your retirement plan. In this role, we assist the trustees of your plan to select appropriate, high quality and diverse investment options to be available within your plan. In addition, we provide ongoing monitoring of those investment options to ensure they continue to perform in a manner that would be expected. Freestate is available to provide participant education considering macroeconomic and market conditions based on requests from your plan sponsor. Freestate can also consult with individual participants to review their specific retirement plan portfolio either on site as requested by plan sponsors or one on one in our offices. We are pleased to serve your company’s retirement plan. Should you need assistance please contact your advisor.
Nathan Haskins Melinda Parks David Barth LaSandra Rice