Hamlin equity accounts increased 2.91% during the second quarter, lagging the S&P 500 Index’s 10.94% gain. Stocks rebounded from the early April lows, driven by remarkably resilient first quarter earnings reports and a de-escalation of America’s trade war. Hamlin bond accounts returned -0.26% during the quarter. The Bloomberg-Barclays High Yield Municipal Bond Index returned -1.14%.
Hamlin’s equity composite increased 0.61% over the first three months of 2025, outperforming the S&P 500 Index’s 4.27% decline. Tariff implementation, frenetic Federal job cut announcements, and weaker economic data rattled investor and executive confidence. Hamlin bond accounts increased 0.48% as Treasury yields declined, and the Bloomberg-Barclays High Yield Municipal Bond Index increased 0.82% over the quarter.
Hamlin’s equity composite advanced 0.59% over the last three months of 2024, trailing the S&P 500 Index’s 2.41% gain. An uncontested and pro-business presidential election result eclipsed the Federal Reserve’s less accommodating mid-December interest rate outlook. The Hamlin bond composite decreased 0.20% during the quarter, outperforming the Bloomberg High Yield Muni Index’s 1.08% decline amid an increase in both Treasury and Municipal benchmark yields.
The latest Federal Reserve tightening cycle that began in 2022 has officially ended with the first cut to the benchmark Federal Funds in September. While the 50 basis point magnitude (rather than the standard 25 bp) surprised some, the cut had long been anticipated and largely priced in by the market. This will likely be the first cut in a series of cuts – the pace and magnitude of which will likely be endlessly debated. Even as the Fed chose to lead with a 50 bp move down in rates (on account of perceived softening), economic indicators like job growth and unemployment continue to indicate strength in the U.S. economy and the prospect for the oft mentioned (and admired) but seldom seen “soft landing”. Inflation and inflation expectations have also continued to trend in the right direction.