Stocks and bonds across the globe struggled in May. US equities eked out a small gain of 0.4%, led by a handful of technology stocks.

The clock is ticking on U.S. debt ceiling negotiations. Treasury Secretary Yellen informed Congress that cash balances are estimated to run out by early June, the so-called X-date.

Better than feared corporate earnings and a lower inflation report led market volatility lower and returns higher after the previous month’s bank crisis aftershock in developed markets.

Markets ended a volatile but positive first quarter, with gains in technology offsetting weakness in banks.

Inflation, the Federal Reserve’s (Fed) response to it, and recession fears led markets lower in February, reversing gains from January.

In its simplest form, banks gather deposits from clients (individuals and corporations), and they pay those clients a short-term interest rate.

Given the 102 times since WWII when policymakers have reached a consensus, we hope history is a guidepost that we will avoid a worst-case scenario of default, and any potential damage could be short-lived.

Last year was an exceptional year, and not in a good way. There was no shortage of worries during the year from COVID-19, the Ukraine war, and the most central story of all: inflation and interest rates.