Summer 2023 Investor Letter: No Recession Yet and A.I.

Insights | Summer 2023 Investor Letter: No Recession Yet and A.I.
Summer Investor Letter Cover

Author: David I. Templeton, CFA, Principal and Portfolio Manager

With the second quarter in the rearview mirror, some equity markets in the U.S. generated record beating returns. The Nasdaq 100 Index was up 39.4%, a record six month return over the index’s thirty-eight year history. The S&P 500 Index was up a respectable 16.9%. A common theme in the first half of the year was the attention artificial intelligence (A.I.) related stocks received. Beginning in the middle of last year, many economists and market strategists were calling for a recession to occur by mid-year this year. With half of this year behind us, a recession still has not occurred. As our regular readers know, we have maintained that a technical recession occurred in 2022 when real GDP growth was negative in both the first and second quarter. Just as a broken clock is right twice a day, the repeated recession call by some will eventually be correct. There are many reasons one might be nervous about the future direction of the economy as there remain numerous conflicting data points.

More of our thoughts on the quarter and expectations for the second half of the year are discussed in more detail in our Summer 2023 Investor Letter.


HORAN Capital Advisors, LLC is an SEC registered investment advisor. The information herein has been obtained from sources believed to be reliable but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HCA and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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