From the desk of Anthony Sandomierski, CPA/PFS, CFP®, MS (Taxation)

Market Update 5/3/2023

 I wanted to reach out and provide everyone a quick update on where markets are and where we see things.  Feel free to contact Jason Gordon or myself with any questions.

 Stock Market Update

The S&P 500 is up high single digits so far this year.  The main reason is that expected earnings haven’t taken much of a hit even with recession talk looming AND the market is anticipating the federal reserve to stop/slow down interest rate increases.  Our opinion is that inflation is still too high (around the 4% to 5% range) and we need to see further reductions in inflation in order for the fed to decrease interest rates.  An increase in expected earnings and/or lower interest rates would be very positive for stock market.  That is the upside.  The downside is higher inflation, higher interest rates, lower earnings.  This is something we will continue to monitor and keep you up to speed on where we see things.

Fixed Income Update / Cash

Right now there is a disparity between short term and long term fixed income investments.  Short-term/cash investments are paying higher interest rates because short term rates have increased pretty rapidly/dramatically over the past year due to the fed trying to fight higher inflation.  What I think gets missed is this is very nice for the short term but there is no real certainty that these rates will stay where they are for the long-term.  It could be a big mistake have too much in cash/a short term bucket because when this money is reinvested in the future it could be at much lower rates.  You should still maintain a comfortable “emergency fund” (an amount in cash you are comfortable with).

Municipal bonds are up low single digits so far this year while paying mostly tax-free interest.  The tax-free component is very important as if you are getting a high after-tax yield.

Bonds had a negative year in 2022 but history has shown that it is very unlikely for that to happen two years in a row.  Bonds are also paying more interest than they were in the past because of higher rates which is a positive.


 Right now we are pretty “neutral” on portfolios.  We’re not looking to make major moves.  Any volatility or a major downturn in the market should be seen as a long-term buying opportunity as always.  If that were to happen, we would likely “rebalance” portfolios and make a tactical move.

We are big believers that earnings ultimately drive markets higher.  Historically you will see a large correlation with the market going up when earnings increase over the long-term.  In theory, the stock market should go up over time if companies’ profits are growing.  Markets move in the short term because they are reacting to what expected earnings are GOING to be.


If anyone feels like they need a review of their financial plan or want a general update for their situation don’t hesitate to reach out to myself or Jason.  We have plenty of availability this spring/summer.

I also want to send a VERY sincere thank you out to all of the clients who reached out to congratulate my wife and myself on the birth of our first child, Anthony Jr.  Mom and baby are healthy and he is growing too darn fast.  Does anyone know how to keep them small forever!?



Anthony Sandomierski, CPA/PFS, CFP®, MS (Taxation)

Wealth Advisor

Direct: (732) 681-1384