August 2023 Market Update

Market Updates
Written By Ben Hockema

Every month this year has brought major events for investors to digest, and August was no different. The month started with Fitch downgrading the United States’ credit rating to AA+ from the top-quality AAA rating.

Key Observations

  • Fitch downgraded the United States’ credit rating to AA+ from AAA at the start of the month.

  • Market volatility continued through the month and most major asset classes experienced negative returns. Higher interest rates due to sentiment shifting to a “higher-for-longer” mentality by the Federal Reserve was a main culprit for weak performance.

  • Commercial real estate has garnered a lot of headlines as the “next shoe to drop” but taking a deeper dive reveals the asset class may be more resilient than it appears on the surface.

Ben Hockema
Previous

Introducing Our Newest Team Member
Next

July 2023 Market Update