May 31, 2022 Snapshot

It will surprise no one that the economic news is mixed. Often we hear only the bad. On the good side, bonds, which had recently been moving in tandem with equities, have for the past three-plus weeks been behaving more in line with historical norms i.e. in opposition to equities, and the yield on money market funds has increased slightly, so holding cash as a hedge against risk has been less costly. The underlying characteristics of the US economy are still robust allowing us to continue to overweight equities even though the going might be tough for several months.