HAPPY NEW YEAR!

Inflation steadily moderated in 2023 and the S&P 500 finished the year with a flourish as the index rose over 15% during just the final 43 trading days.  As a result, the S&P 500 finish the year with a total return over 25%.  However, it was a volatile year for both stocks and bonds, as from July through the end of October, stocks fell more than 10% from the summer highs while bonds also struggled.  Underlying much of the third quarter market weakness was a frenetic rise in interest rates.  Coincidently, once this surge in interest rates reversed, largely due to inflation slowing more than many expected, stocks soon bottomed and enjoyed a stellar November and December.  Bonds also ended the year with strength, as with interest rates plummeting, the Bloomberg US Aggregate Bond index enjoyed its strongest month in almost 40 years, rising 4.3% in November.  Next year features the 2024 presidential election, and while political headline risk will be elevated, it is hard to enter the new year with significant pessimism as the Federal Reserve and inflation have become notably more supportive of markets.

In observance of the New Year's Day holiday,
our office will be closed Monday, January 1, 2024.

On behalf of the entire Team at Peddock Capital Advisors,

Happy New Year!