Well, the year 2023 is officially a wrap. Overall market performance was relatively strong, with equities, defined as the total return of the S&P 500, up 26.29% for the year, and bonds, defined as Bloomberg U.S. Aggregate Bond Index, up 5.53%.
The strong performance of equities in 2023 was somewhat unexpected, with many market forecasters predicting lower returns at the beginning of the year, especially with growing concerns of a recession. The stock market return for 2024 is equally uncertain, and many investors may be looking to cash, given attractive yields exceeding 5%; however, it’s important to remember that equities have dramatically outperformed cash historically, especially over longer investment periods, and are expected to do so into the future.
