Review
In 2023, the stock market experienced robust performance with major indices reaching record highs fueled by strong corporate earnings, supportive fiscal policies, and optimism surrounding economic recovery from the pandemic. Despite initial concerns over inflation and supply chain disruptions, the economy exhibited resilience, marked by steady job growth, rising consumer spending, and accommodative monetary policies. Geopolitical tensions and sporadic COVID-19 outbreaks posed intermittent challenges, but overall, 2023 showcased a blend of adaptability and cautious optimism in navigating uncertainties, setting the stage for a dynamic economic landscape in the years ahead.
Outlook
The market rally that ended 2023 has continued momentum in January of 2024. Investor optimism based on the Federal Reserve signaling they will begin cutting interest rates along with an increased likelihood of a soft-landing avoiding recession has continued to push market indices to new highs. Inflation normalizing, declining interest rates and a resilient consumer are the recipe for a favorable market.
Although exciting to watch the markets make new highs almost daily, we foresee a late March to early April pullback leading to a second half rally that typifies election year market performance. Although an early year pullback may be inevitable, there is anticipation the market will have a strong second half and end the year at, or close to, new highs.
As always, I stress that in this ever-changing political and economic environment, sensible diversification is the key to weathering market uncertainties.
Jason M. Vavra, CPA, PFS
Email: jvavra@vcm-wealth.com Website: www.vcm-wealth.com Twitter: @VavCap
Disclaimer
The information contained herein is not considered an offer to buy or sell any securities referred to herein. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. There is no guarantee that the figures or opinions forecasted in this report will be realized or achieved. Past performance is no guarantee of future results.
