Key Events: Inflation picks up
Consumer prices rose more than expected; Core CPI climbed 3.9%, well above the Fed’s inflation target driven by increases in housing prices. Meanwhile continued Houthi attacks on ships in the Red Sea may further stoke supply-chain inflationary pressures.
The SEC provided landmark approval for exchange traded funds that directly invest in Bitcoin.
Market Review: A bumpy start to the new year
Stocks processed economic prospects: Large cap stocks gained, while small cap stocks remained in the red.
Bonds recovered from last week’s losses on hopes for rate cuts and a strong economy.
Outlook: …Uncertainty
An uncertain outlook greets us in the new year:
- Will we have a soft landing, recession, or “no landing”?
- When will the Fed cut rates, and by how much?
Answers to these questions will drive markets for the year. Our portfolios are diversified, with a broad mix of stocks and bonds. Markets move in cycles; OneAscent portfolios are prepared to thrive amidst the uncertainty of 2024.
Market cycles[1]
Navigator Outlook: January 2023
[1] Source: Visual Capitalist Visualizing 60 Years of Stock Market Cycles (visualcapitalist.com)
[2] Source: Market Returns reference the following indices: Large Cap – S&P 500, Mid Cap Growth – Russell Midcap growth, Mid Cap Value – Russell Midcap Value, Small Cap – Russell 2000, Developed – MSCI EAFE, Emerging – MSCI Emerging Markets, Aggregate – Bloomberg US Aggregate, High Yield – Bloomberg High Yield
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