Reflecting on 2023: Market Trends and Resilience

In the year 1960, "The Magnificent Seven" became a Western classic. Fast forward to 2023, and we witnessed a different kind of magnificence in the stock market. Technology giants like Amazon, Apple, and Microsoft, formed the modern "Magnificent 7," dominating market gains and pushing the broader market to new heights.

Market Highlights of 2023:

• The S&P 500 soared for nine consecutive weeks, marking its longest winning streak since 2004.

• Big tech stocks, especially Apple, Microsoft, and Nvidia, witnessed significant gains, with the Nasdaq closing the year on a strong note.

• Sector performances varied, with Information Technology leading the way, while defensive sectors like Energy and Utilities lagged.

Global Markets:

• Positive trends weren't confined to the U.S. All 36 developed markets tracked by MSCI recorded gains, with 33 of them achieving double-digit growth.

• Developing markets also experienced positivity, with 30 of the 40 tracked by MSCI posting gains.

Asset Class & Style Performance:

• Growth outperformed Value, and mega-cap names, including the "Magnificent 7," excelled.

• Commodities, the only asset class to advance in 2022, retreated in 2023.

Inflation and Market Influences:

• Inflation, which peaked at 9.1% in June 2022, significantly retreated, with the Consumer Price Index dropping two-thirds.

• Oil and gas prices played a pivotal role in reducing inflation, despite geopolitical tensions.

Federal Reserve and Economic Landscape:

• The Federal Reserve's rate-hiking cycle paused, bringing relief to the market.

• A short-lived banking crisis in March was swiftly addressed by policymakers, maintaining overall stability.

As we reflect on 2023, we are reminded of the dynamic nature of markets and the enduring potential they hold. Here's to navigating the evolving financial landscape in 2024!