Musings on Markets: Mid-Year 2023 Assessment of Market Resilience, Valuation, and Equity Performance

This article analyzes market performance in the first half of 2023, noting that equity markets have recovered significantly despite macroeconomic concerns about inflation and recession that dominated early-year sentiment. The author examines sector performance, valuation metrics, and the concentration of gains in large-cap profitable technology companies, concluding that while the S&P 500 appears fairly valued, macro forecasting and market timing remain fundamentally unreliable.