ECONOMIC UPDATE
- May 15, 2023
- 10:27 am
- No Comments
May 2023 | Monthly Economic Update

Source: Zephyr Style Advisor
Better than feared corporate earnings and lower inflation report led market volatility lower and returns higher after the previous month’s bank crisis aftershock in developed markets. International developed equities led major regions with a gain of 2.9%, followed by US equities with a gain of 1.6%. Emerging market equities struggled, declining 1.1% as China fell 5.2% for the month.
Within US equity sectors, top performers included notable rebounds in financials and energy, gaining 3.2% and 3.3%, respectively. Tech-related, communication services sector maintained leadership of 3.8% for the month and for the year. Cyclical sectors, including industrials, consumer discretionary, and materials fell into negative territory. Across size and style, larger companies beat small-sized companies, and value-oriented companies beat growth.
Fixed income markets were positive in April as rates fell modestly, and investors anticipate the potential final interest rate hike in the upcoming May FOMC meeting. Despite mixed economic data coming out and recession fears still looming, credit led the way over government bonds in April, with high-yield bonds performing best with a gain of 1.0%. Government and longer-duration bonds performed less favorably despite their leadership to start the year, but still positive for the month.
Commodities continue their 2023 struggle with another decline in April, falling 0.8%. Results within commodities were mixed, with precious metals in positive territory while industrial metals and energy were negative. Despite volatility cooling off in April, gold still gained 1.0% as the US Dollar fell 0.5%, with concerns ongoing over the US debt ceiling. Lastly, REITs were in positive territory globally, primarily driven by apartments and residential real estate.
The global 60/40 index rose 1.1% in April, with global equities outperforming global bonds. For the month, allocations to equities, bonds, REITs, and gold helped, while commodities hurt. Year-to-date results reflect the same trend, with gold and equities leading the way.

Source: Zephyr Style Advisor
Tip of the Month
Consider the benefits of a 529 plan—a specialized savings account for families preparing for future college expenses. With tax-free growth, tax-free withdrawals for education expenses, and the option to use funds for K-12 education, it provides flexibility and valuable advantages. By understanding the features of 529 plans, you can confidently make informed decisions about securing your child’s educational journey.
The Monthly Riddle
I am greater than gold and more valuable than money. I cannot be inherited, nor can I be stolen, yet many strive to obtain me. What am I?
LAST MONTH’S RIDDLE: I have branches but no fruit, trunk, or leaves. What am I?
ANSWER: A bank
Important Information
This is for informational purposes only, is not a solicitation, and should not be considered investment, legal or tax advice. The information has been drawn from sources believed to be reliable, but its accuracy is not guaranteed, and is subject to change. Investors seeking more information should contact their financial advisor. Financial advisors may seek more information by contacting AssetMark at 800-664-5345.
Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss. Actual client results will vary based on investment selection, timing, market conditions, and tax situation.
It is not possible to invest directly in an index. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly. Index performance assumes the reinvestment of dividends.
Investments in equities, bonds, options, and other securities, whether held individually or through mutual funds and exchange traded funds, can decline significantly in response to adverse market conditions, company-specific events, changes in exchange rates, and domestic, international, economic, and political developments.
Bloomberg® and the referenced Bloomberg Index are service marks of Bloomberg Finance L.P. and its affiliates, (collectively, “Bloomberg”) and are used under license. Bloomberg does not approve or endorse this material, nor guarantees the accuracy or completeness of any information herein. Bloomberg and AssetMark, Inc. are separate and unaffiliated companies.