Check out our latest market updates and important financial alerts

blog image

June 2023 Market Watch

June 06, 20234 min read

June 6, 2023

Market Returns

Market Health Indicator - Current Score


The Market Health Indicator (MHI) measures market health on a scale of 0 - 100, analyzing various market segments such as economics, technicals, and volatility. Higher scores indicate healthier market conditions.

It was the tale of two markets as stocks diverged in May…

On the positive end were large tech stocks, as the artificial intelligence buzz catapulted chipmakers and other AI-linked companies higher. Unfortunately, most everything else didn’t fare as well, as eight of the 11 sectors in the S&P 500 finished the month in the red (and are in negative territory year-to-date through the end of May as well).

This trend resulted in a wide spread among major US stock indices. The Nasdaq 100 soared 7.61% and the S&P 500 gained 0.43%, supported by larger growth companies. However, small-cap stocks were down 1.09% and the more blue chip Dow Jones Industrial Average dropped 3.48%.

Following the latter group lower, international stocks faltered in May with losses of 3.73% for developed international stocks and 2.96% for emerging markets. Disappointing economic data created some headwinds overseas. Eurozone inflation remained stubborn as it ticked higher from 6.9% to 7.0%, and manufacturing data fell to its lowest point in three years while pointing to a contraction in activity.

Fixed-income asset classes were also lower for the month as the 10-year Treasury yield jumped from 3.44% to 3.64%. With interest rates moving higher, the US aggregate bond market declined 1.09%, snapping the first two-month winning streak bonds have had since mid-2021. Behind rising rates was an increase in rate hike expectations for the upcoming June meeting as investors dissected various inflation reports.

Despite the negative skew for the month (outside of tech stocks), markets have remained more stable so far in 2023 compared to last year. There’s reason to be optimistic as the Fed seemingly nears the end of its rate hiking campaign, but it’s not unreasonable to expect some volatility along the way as markets attempt to claw their way out of the hole from 2022’s sharp losses. Having a plan in place can provide direction when market signals are mixed, helping emphasize the long-term even amid short-term divergences.

Is this real life? If this just fantasy?

Not just iconic Queen lyrics, many people are starting to wonder this about the recent AI hype.

Everywhere you turn it seems another company is releasing a new artificial intelligence initiative. Nvidia, one of the largest beneficiaries from this recent trend, mentioned AI over 100 times in its most recent earnings call.

Some experts have drawn comparisons to the early days of the gold rush, even calling it the fourth industrial revolution with more upside ahead. However, others suggest exercising caution before jumping on the bandwagon, pointing to recent failed projects in the metaverse and cryptocurrencies. Some even worry about a Terminator or Matrix scenario.

While opinions are mixed on the role of AI going forward, engineers are still working on fixing issues with misinformation, copyright infringement, and privacy concerns.

Turns out pets don’t have to ruff it as much as humans…

At the onset of the pandemic there was a surge in the number of pet adoptions as people were looking for companionship while stuck at home.

Now, while consumers have been cutting back spending on themselves due to lingering inflation, they’re not skimping on their fur babies. Pet-product retailers have noted steadier sales in contrast to a broader retail slowdown.

The US pet market it estimated to be worth $124B, and experts believe it could reach $200B by 2030. Healthcare services, such as vets and insurance, have been driving the recent growth.

Even Walmart is jumping into the market, entering a deal with veterinary telehealth provider Pawp as a perk for Walmart+ members.

As companies look to strengthen customer loyalty, pet loyalty could be the key.

Fun Facts

  • The Onion Futures Act bans the trading of onion futures in the US. It was enacted in 1958 after two traders manipulated the onion market.

  • Focusing on something (i.e. reading, watching TV, or listening to a podcast) causes you to blink approximately 60% less than normal.

  • While technopreneurs dominate the headlines, fewer than 10% of billionaires are under the age of 50.

  • Don’t forget to book those tee times. June 18th is Father’s Day!

Back to Blog


Winnow Wealth, LLC (“Winnow Wealth”) is a Registered Investment Adviser.

The information presented is not investment advice – it is for educational purposes only and is not an offer or solicitation for the sale or purchase of any securities or investment advisory services. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser when making investment decisions.

This content is intended to provide general information about Winnow Wealth. It is not intended to offer or deliver investment advice in any way. Information regarding investment services are provided solely to gain an understanding of our investment philosophy, our strategies and to be able to contact us for further information.

All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward‐looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.

Past performance is no guarantee of future returns.

Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable.

Additional Important Disclosures may be found in the Winnow Wealth Form ADV Part 2A which we will provide upon request.

Investment advisory services also offered through Brookstone Wealth Advisors (BWA), a registered investment advisor. Winnow Wealth & BWA are independent of each other.

(254) 776-8400

200 W State Hwy 6, Suite 330

Waco, TX 76712

Monday - Friday 9AM - 5PM

Copyright © 2024 Winnow Wealth, LLC

Winnow Wealth, LLC (“Winnow Wealth”) is a Registered Investment Advisor (“RIA”), located in the State of Texas. Winnow Wealth provides investment advisory and related services for clients nationally. Winnow Wealth will maintain all applicable registration and licenses as required by the various states in which Winnow Wealth conducts business, as applicable. Winnow Wealth renders individualized responses to persons in a particular state only after complying with all regulatory requirements, or pursuant to an applicable state exemption or exclusion. Investment advisory services also offered through Brookstone Wealth Advisors (BWA), a registered investment advisor. Winnow Wealth & BWA are independent of each other.