Following the Strong Winter Rally
It took two full years for the stock market to finally reach new highs. After the recession worries of 2022 and a steady recovery in 2023, the S&P 500 finally hit new highs this January.
January 2024 Commentary Vibecession
In 2022, interest rates hit levels not seen in 20 years and the conventional wisdom on Wall Street called for a recession to arrive in 2023. As a result, the stock market realized a bear market drawdown of 25%. However, the economy proved resilient, and the employment situation remained strong.
The Perfect Landing
The U.S. stock market saw a strong recovery through the first eight months of the year. After falling by 18% in 2022, the S&P 500 advanced by 16% through September 15. Over the past 18 months, the Federal Reserve raised short-term interest rates 11 times to 5.25%.
Trending in the Right Direction
The U.S. stock market saw a bear market in 2022, falling 25% before bottoming in October. Fears of a recession weighed on markets as the impacts of inflation and higher interest rates were unclear.
January 2023 Commentary The Economy is Slowing, and That’s the Plan
2022 was a tough year for financial markets. Both stocks and bonds saw double-digit losses. Surging inflation forced the Federal Reserve to aggressively raise interest rates.
After two years of flat markets, the U.S. stock market reached new highs in 2024. Recession worries in 2022 did not materialize, and the economy navigated the highest interest rate environment since 2000.