Investment Commentary: Q3 2023

The third quarter of 2023 saw equities markets weaken as the S&P dropped -3.3% and Russell 2000 fell by -5.1%. Markets, constantly digesting new data, began to price-in “higher for longer” interest rate scenarios — as stubbornly high inflation, along with strong consumer spending and robust employment data trends remained intact. Although short-term rates were relatively steady, 10-year Treasury rates jumped 80 basis points from 3.8% to 4.6% during the quarter.

While higher rates will continue to weigh on the economy, e.g., 30-year mortgages have crossed over 8% and credit card debt and interest payments are at an all-time high, near-term geopolitical concerns have taken centerstage. Rapidly rising tensions in the Middle East and the drawn-out conflict in the Ukraine are increasing market uncertainty and seem unlikely to resolve soon.

The Community Foundation’s Corporation returned -0.9% in the third quarter of 2023, 1.4% ahead of the market benchmark, which was down -2.3%. For the year, the Commingled Fund has posted a net return of 6.9% versus 5.7% for the market benchmark. The Fund remains well-positioned and diversified in a variety of asset classes, strategies and geographies, and investment durations.

Questions? Contact A.F. Drew Alden
SVP and Chief Investment Officer, The Community Foundation for Greater New Haven;
President and CEO, TCF Mission Investments Company

*The Corporation is a Connecticut registered investment adviser and part of The Community Foundation for Greater New Haven.

Learn more about The Community Foundation's investments.