Investment Review - January 2024
- The major U.S. stock indices moved higher in December. The Dow Jones Industrial Average increased by 4.8%, the S&P 500 was up by 4.4%, and finally the Nasdaq Composite increased by 5.5%. All things considered a great year for the market, following 2022 when all three major indices had their biggest yearly losses since the financial crisis in 2008.
- The U.S. stock indices were not alone in having a stellar year. International stocks, as judged by the MSCI EAFE was up 14.8% in 2023 while the Emerging Markets, judged by MSCI Emerging Markets, were the laggard up almost 6.1%.
- The yield curve will end the year still inverted as the 2-year Treasury yield of 4.25% is above that of the 10-year treasury yield of 3.88%. The inverted yield curve is viewed by many economists as a harbinger of a recession, as it indicates investors believe the Federal Reserve will have to cut the Federal funds rate in the future.
Key Investment Statistics
Sources: FactSet, Federal Reserve, Federal Reserve Bank of St. Louis, Freddie Mac, U.S. Department of Labor, U.S. Department of Commerce, National Association of Realtors
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