Market Update May 2022

Market declines YTD and perspectives on high-quality growth stocks

Although we recently provided a quarterly update, the equity markets have continued to decline since then. Additionally, this year, growth stocks have materially underperformed value stocks (a sharp reversal vs. the large outperformance of growth stocks over the prior six years and more broadly since the GFC). We wish to share some of our current and evolving thoughts regarding a) reasons behind the equity market decline YTD, b) potential scenarios over the next 12 months for the S&P 500, and c) further discussion behind the growth and technology stock selloffs and potential opportunities going forward.