UGC’s Monthly Market Update – May 2023

Welcome to the UGC’s Monthly Market Update for May 2023.

Join UGC’s CEO & Chief Investment Officer, Joel Hewish, as he takes a deep dive into the latest financial market trends and conditions for the US and Australia, as well as providing an in-depth analysis of the stock markets.

Don’t miss out, CLICK HERE to get the latest video education from UGC.


  • Stock market breadth is a major issue and cause for caution.
  • Mega-cap tech stocks reasonably valued despite their recent outperformance.
  • What’s behind the rush into mega-cap tech stocks?
  • Do Q1 earnings surprises suggest worst is behind us?
  • Earnings outlook varies considerably from sector to sector.
  • Hard Landings are preceded by tight lending standards.


  • RBA raises interest rates by another 25bps 


  • Stock market breadth is weak as mega-caps contribute to most of the index gains.
  • Our investment portfolios are heavily tilted to mega cap growth stocks, including NVDA, which was one of our largest positions and surged almost 30% on Wednesday night.
  • Recessionary risks remain high in the US.
  • Our strategies such as Platinum Alpha and Global Alpha will likely struggle to outperform sustainably until breadth widens.
  • We remain cautiously optimistic but continue to have one foot at the door to re-apply hedges if markets starts declining again.
  • Rally in US growths stocks has been narrow.
  • S&P 500 Cycle Composite for 2023.
  • Volatility is starting to decline and moderate.
  • Sentiment is starting to get to extremes.
  • Previous years when S&P 500 Q1 returns were >7%.

UGC General Advice Past Performance Warning

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