The Economy is Contracting and Recession Risks are Raised. How to Shift Your Portfolio

Markets Inch Higher in April.

Despite a slowing economy, lingering inflation concerns, and further banking turmoil, all three major US indices posted gains in April likely on the back of better than expected earnings. International developed equities (+2.9%) and US value stocks (+1.7%) were among the best performers while US small-caps (-2.8%) and US mid-caps (-0.8%) were among the worst. Bonds were mostly higher as 7-10 year US Treasuries increased 0.8%, investment grade corporates rose 0.6%, and the US Aggregate Bond Index gained 0.6%. Commodities produced mixed returns as silver, crude oil, and gold were up (+4.0%, +1.6%, and +0.9%, respectively), while broad-based commodities were down (-0.8%).