Recession Risks are Overblown. Stick with Short-Duration and Inflation Assets

May’s Rebound.

Despite negative returns in April and market turbulence throughout May, equities finished marginally higher for the month. US small-caps were amongst the best performers (+1.9%), followed by international developed equities (+1.7%) and US value (+1.7%). Bonds also delivered mostly positive returns as investment grade corporates were up 1.9%, high yield credits rose 1.6%, and municipal bonds gained 1.5%. Commodities produced mixed returns as crude oil and broad-based commodities rose (+10.8% and +1.9%, respectively) while gold and silver fell (-3.3% and -5.7%, respectively)