A Robust Year For The Markets
2023 proved to be an exceptional period for the capital markets, defying early expectations of an imminent recession. The backdrop of falling interest rates, attributed to ongoing improvements in inflation outlook, played a pivotal role in the robust performance of both equities and fixed income during the fourth quarter.
The S&P 500 Index surged 11.69% in the fourth quarter, culminating in an impressive year-to-date return of 26.29%. Notably, large-cap growth stocks also outperformed, with the Russell 1000 Growth Index gaining 14.16% in Q4 and 42.68% for the entire year.
While value stocks trailed their growth counterparts, they still closed the year positively. The fourth quarter witnessed an upswing in market breadth with the Russell 2000 Index of small-cap stocks advancing by 16.93%. International and emerging stocks, though lagging behind the US market, also ended the year in positive territory.
In our detailed commentary, KAR Co-CIO Doug Foreman, CFA and Chief Market Strategist Julie Biel, CFA delve into three key events in 2023 that served as “wake-up” calls for investors. We invite you to read the full Q4 2023 commentary where we also share our outlook for the new year.
