Markets and the economy remained on a better-than-expected trajectory so far in 2023. Inflation is higher than desired but has likely peaked, the labor market is still robust with around 3.5% unemployment, and corporate earnings have surpassed low expectations. Even residential housing, which many called for a swift decline in 2023, has defied consensus reflecting a slight decline in mortgage rates paired with still low levels of supply. Markets reflected this ‘better than expected’ mentality with positive results across most core areas in April. This brought year-to-date gains to levels that most investors would be happy with for the full year despite being only four months into the year.
