U.S. economic resilience and restrictive Federal Reserve policy contributed to interest rates moving higher. Leading to a selloff in both stocks and bonds across the board. U.S. large-cap stocks were down (3.3%) and small-cap stocks sold off by (5.1%).  U.S. growth and value stocks were both down about (3.1%). Foreign-developed stocks sold off by (4%) while emerging stocks held up a little better, down (2.8%). Core U.S. bonds were down (3.2%) for the quarter as U.S. Treasury yields rose slightly. Inflation-sensitive bonds were down (2.6%) and high-yield bonds were basically flat at 0.46%.   

In this quarter's commentary, we focused on the following topics:

• A Closer Look at Valuations: we review the valuation of the U.S. stock market as a whole, and take a closer look at valuations based on the different investment styles (growth, value, and core) and market size (large, mid, and small-cap). 
• Investment Rules: we review the investment rules we have learned in our 30+ years of investing experience, and often look at to help guide us through challenging investment environments.    

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Click here to read our full commentary.