Hamlin equity accounts advanced over the last three months. The S&P 500 gained 3.43% during the second quarter, defying skeptics. Stocks celebrated strong Q1 corporate earnings performance, digesting another Federal Reserve rate hike and trade policy uncertainty. We are returning to a “question and answer” format for the summer -time newsletter. We have tried to answer the questions posed most frequently by our clients and business partners over the last few months.
Hamlin equity accounts decreased modestly in value over the last three months as value and income stocks underperformed the broader market for a fifth consecutive quarter. The S&P 500 Index swung from a 7.5% gain in late January to a 10% correction from the highs as inflation, global trade and technology stock jitters overwhelmed steady increases in earnings expectations.
Hamlin equity accounts increased in value over the last three months as the S&P 500 jumped 6.6% in the fourth quarter, celebrating the eventual lowering of corporate tax rates and improving global growth. Treasury yields backed up modestly as bond investors discounted pending fiscal stimulus and a well telegraphed December Federal Funds rate increase. Hamlin high-yield tax exempt municipal portfolios increased in value over the final quarter of 2018.