On this episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Managing Director of Investments Sasan Faiz to discuss trends and headlines that have set the landscape for the first half of 2023.  

Although there have been slowdowns in some areas of the economy, the S&P 500 is up almost 17% for the year. However, Sasan says the S&P’s growth is not as steep as it looks and is mostly due to a handful of companies that are up almost 58% for the year, like Apple, NVIDIA, Tesla, Google, Microsoft, etc. Most other S&P 500 companies are only up around 5%. 

Furthermore, Chris notes that rising interest rates have created competition for stocks since investors can now get a safe, reasonable return by investing in some fixed income or U.S. Treasuries at around 5%. Sasan agrees and highlights our focus on private lending as regional and smaller banks pull back, creating more opportunities for creative/flexible financing to be handled privately. 

Chris and Sasan also expect the commercial real estate sector to face challenges but see potential in multifamily apartments and opportunities for private real estate managers to capitalize on dislocations in the commercial real estate market.

Finally, Chris and Sasan discuss the importance of diversification and highlight the potential in the commodities and natural resources sector due to factors like globalization and decarbonization. They also encourage listeners to actively manage and diversify their portfolios as the financial landscape continues to evolve. 

Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.