Q2 2023 Market Review

Global stocks continued their recovery from last year's downturn, with the MSCI All Country World IMI Index (up around 6% in Q2) outperforming global bonds (Bloomberg Global Aggregate Bond Index) for the third consecutive quarter. Inflation worries in the US continued to temper with the 5-year expectation currently around 2.5% as measured by breakeven rates in the TIPS market. Volatility also trended down with the VIX (CBOE Volatility Index) falling to year-to-date lows in June.