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Equity Overview

Seven of eleven sectors in the S&P 500 rose in April, with consumer staples the best gainer and industrials the worst loser. Volatility was light, as the S&P 500 moved more than 1% on only 3 of 20 trading days.

First quarter earnings reported in April were strong. With 53% of S&P 500 companies reporting, 79% beat consensus earnings expectations and 74% beat consensus revenue expectations–in both cases, above the one-year and five-year averages. However, the market rewarded beats less than usual and punished misses more severely.

Notwithstanding solid gains in stock prices so far this year, the forward 12-month price/earnings ratio is a reasonable 18.1, still below the 5-year average of 18.5.

Macro Overview

The banking crisis which began with the failure of Silicon Valley Bank and two others in March reached a climax in April with the collapse of First Republic Bank, the 14^th-largest commercial bank in the U.S. With assets of $229-billion, First Republic was the second-largest bank failure in U.S. history. Once again, regulators acted swiftly to avoid contagion. In the last weekend of the month they engineered a takeover by JPMorgan Chase whose CEO Jamie Dimon announced that “this part of the crisis is over.” That prediction seemed correct as other midsize banks reporting first quarter earnings demonstrated that deposits had stabilized and profits remained healthy.

Consumer prices reported in April rose 5.0% annually, the lowest level in two years, continuing the decline from a peak of 9.1% last June.

In its initial report, the Commerce Department estimated that 1Q2023 GDP rose at an annual rate of 1.1%. This was lower than the 2.6% increase in 4Q2022 but reflected a third consecutive quarter of growth after declines in the first two quarters of 2022. Nonetheless, prospects for further growth this year were dampened with the release of the minutes of the March meeting of the Fed. Those minutes indicate that the Fed has now come around to the consensus view of economists that there will be a mild recession later this year.

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets. Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund. The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.

Dow Jones	40,842
S&P 500	5,522
Nasdaq	17,599

2 Yr Treasury	4.29%
10 Yr Treasury	4.09%
10 Yr Municipal	2.78%
High Yield	7.30%

Dow Jones	8.37%
S&P 500	15.78%
Nasdaq	17.24%
MSCI-EAFE	6.50%
MSCI-Europe	5.88%
MSCI-Pacific	7.62%
MSCI-Emg Mkt	6.26%

US Agg Bond	2.03%
US Corp Bond	2.16%
US Gov’t Bond	1.92%

Gold	2,491
Silver	29.22
Oil (WTI)	78.50

Dollar / Euro	1.08
Dollar / Pound	1.28
Yen / Dollar	154.01
Canadian /Dollar	0.72

Stock Indices:

Bond Sector Yields:

YTD Market Returns:

Commodity Prices:

Currencies:

Portfolio Overview

Macro Overview

Additional Disclosures

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