Client Letters

The third quarter was punctuated by the long-awaited reduction of the federal funds rate by the Federal Reserve’s Federal Open Market Committee (FOMC). On September 18, the FOMC reduced the federal funds rate by 0.50%, to a target range of 4.75% to 5.00% (in practice,...

The second quarter of 2024 saw shifting dynamics in inflation, monetary policy, and geopolitical tensions lead to bouts of optimism punctuated by stretches of caution. As such, the well-worn adage, “Sell in May and go away,” may be as felicitous as ever as market...

Overall, the US economy continues to enjoy a modest tailwind allowing a reasonable level of growth, fairly strong employment trends, easing inflationary pressures, and ongoing increases in equity market prices. Fed policymakers find themselves in an awkward position,...

The economy continues to grow, albeit at an increasingly slower pace, and has not fallen into recession. Regardless, many economists are still calling for recession at some point in 2024. We continue to watch the employment data with fascination, believing the issue...

The third quarter was the worst of the year for broad stock and bond market indexes, all of which finished lower. Stock prices faltered on fears of slowing growth, and bond prices dropped as interest rates continued to rise. The bright spots for the quarter were in...

First quarter economic growth, as measured by gross domestic product (GDP), was reported at a solid 2.0% following fourth quarter GDP of 2.6%. The second quarter GDP number will be released at the end of July, and we believe it will show continued positive results....

We’d like to dedicate the first client letter in 2023 to “2022 in the rear-view mirror.” This letter highlights how GVIC’s rigorous, fundamental investment process delivered for the firm’s clients in both stock and bond portfolios last year.According to Deutsche...