Keel Point Insights

Check out our guides, tools and research for expert help on all your
life planning, wealth planning, and familiy management questions!

& Videos

Awards &
Press Releases


Keel Point
in the News

Market Recap – May 22, 2023

Keel Point

May 21, 2023

Positive economic news and a belief that the U.S. will avoid a default on its debt service, as well as program and operating obligations, contributed to positive stock market gains this  past week and even led some Fed officials to indicate that more interest rate increases may  be needed.  

  • Strong gains in retail sales and industrial production in April indicate the U.S. economy is off to a better second quarter start than many had expected.  
  • The housing market is also showing strength with homebuilder confidence rising to a 10-month high in May, despite its sensitivity to interest rate increases and cyclical economic pressures. 
  • Debt Limit discussions continue but without any sign that the significant differences have been resolved. In addition, once President Biden and Speaker McCarthy reach agreement,  both must garner enough votes within their own parties to assure passage in both the House and the Senate. 
  • But even with the parties suspending discussion late last week, the S&P 500 was up 1.7% for the week, outpacing other developed markets and the All-Country World Equity Index which was up 1.4% for the week. 

International equity markets continue to outperform the U.S., even with the U.S. tech sector  dominating stock price performance in 2023, through last Friday, May 19. 

  • 2023 through May 19, the Nasdaq-100 is up 27.1%, followed by non-U.S. developed markets  (“EAFE”) up 12.4%, the S&P 500 up 9.9%, and the broader ACWI up 9.5%. 
  • The principal driver in S&P 500 performance in 2023 has been the mega-cap companies,  with the largest five stocks returning approximately 40% year-to-date — 80% of the S&P  500’s overall gains. How long this out-performance can continue is not clear, but recent breakthroughs in AI, lower bond yields and a view among some that these companies will be more resilient in a downturn have buoyed their prices.
  • In the broader markets, the outlook for non-U.S. markets has become more positive. LPL  reports that non-US markets trade at 13 times 12-month forward EPS (earnings per share) vs 18 times for U.S. equities, which is a significant discount to the historical international / U.S. P/E spreads. At the same time 2023 EPS growth currently is expected to be close to  4% for non-U.S. vs -1% for US equity.  

Disclosure: Securities offered through Keel Point Capital, LLC, Member FINRA and SPIC. Brokerage and Investment Advisory Services are offered under the Keel Point brand. Investment Advisory Services offered by Keel Point, LLC an affiliate of Keel Point Capital, LLC. While reasonable efforts have been made to provide data from sources considered to be reliable, no guarantee of accuracy is given. Keel Point does not give tax, accounting, regulatory, or legal advice to its clients.

Related News & Articles

Market Recap – May 13, 2024

Financial markets were steady last week, and the S&P 500 was up 1.85% from the prior week’s close and up 9.5% so far in 2024.  The April CPI reports on Wednesday, May 15, and core CPI inflation is likely to change only slightly from higher than expected than...

read more

Market Recap – May 6, 2024

The Fed meeting and an across-the-board weaker April jobs report caused volatility in financial markets, which by the end of the week had settled and closed higher on Friday, with the S&P 500 up 0.55% last week and 7.5% year-to-date.     As much as the Fed seems...

read more