Our April client letter covered much of the circumstances driving the market reversal which continued through the 2nd quarter. The broadening of market leadership accelerated with the healthcare sector in particular attracting more investment dollars. The rotation away from a narrow group of large technology companies continued.
Despite the shifting headlines of the War in the Middle East, corporate earnings continued to drive markets. In that vein, we expect 2nd quarter’s reported earnings to grow at greater than 20%. Oil prices have retreated from their high and interest rates have traded in a narrow band. The U.S. stock market is still the cleanest dirty shirt in the laundry hamper.
