2023 Market Recap
From Zuckerman Investment Group’s Investment Team
2023 was a strong year for the US equity market.* As we head into 2024, it is important to keep expectations in context; only 11 times out of the past 97 years has the S&P 500 increased more than 20% in consecutive years.
We’ve put together a 2023 Market Recap to address this past year. Please take a moment to look through our deck below.
We want to hear from you! Please reach out to your advisor if you would like to set up a meeting to review 2023, share any updates, or discuss the year ahead.
*S&P 500 +26%, Russell 2000 +17%, Russell 3000 Value +12%
Our Work
Investment Insights – Keith R. Schicker, CFA, Portfolio Manager
- The First Year of Investment Insights: In January 2023, we launched the first Investment Insights—a recurring column dedicated to the practice of protecting and building wealth, authored by Keith Schicker, CFA, Portfolio Manager. Since its debut, we’ve released 12 articles, guiding our subscribers through crucial topics such as Diversification, Asset Allocation, Silicon Valley Bank, and more. Delve into a year’s worth of valuable insights by clicking here. [Investment Insights]
Primary Sources
- Consumer Price Index (CPI) Summary: The CPI for All Urban Consumers (CPI-U) increased 0.3 percent in December on a seasonally adjusted basis, after rising 0.1 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.4 percent before seasonal adjustment. [BLS]
- Federal Reserve Board Announces Preliminary Financial Information For the Federal Reserve Banks’ Income and Expenses in 2023: The Federal Reserve Board on Friday released preliminary financial information for the Federal Reserve Banks’ income and expenses in 2023. The 2023 audited Reserve Bank financial statements are expected to be published in coming months and may include adjustments to these preliminary unaudited results. [FRB]
- Minutes of the Federal Open Market Committee, December 12-13, 2023: The Federal Reserve on Wednesday released the minutes of the Federal Open Market Committee meeting that was held on December 12–13, 2023. [FRB]
News
Financial Markets
- Inflation Edged Up in December After Rapid Cooling Most of 2023: CPI rose 0.3% in December and was up 3.4% from a year earlier. [WSJ]
- U-Haul Migration Trends: Texas, Florida Top Growth States Again in 2023: Texas netted the largest number of movers in one-way U-Haul® equipment in 2023, marking the third consecutive year it has finished atop the U-Haul Growth Index. [PR Newswire]
- The Quality Anomaly: The Weirdest Market Inefficiency in the World: As GMO launches its first ETF, it seemed like a good time to share my thoughts on the market inefficiency that the strategy seeks to exploit – the quality anomaly. [GMO]
Financial Planning
- Why This Is a Good Year to Be a Renter, in Three Charts: Families could finally catch a break on one of the biggest bills they might pay each month: the rent. [WSJ]
- Buying Home and Auto Insurance Is Becoming Impossible: Huge losses from national disasters prompt industry to jack up prices and pull back from some markets; ‘worst possible scenario’ for consumers. [WSJ]
- Claiming Foreign Taxes: Credit or Deduction: If you paid foreign taxes on overseas investments, you may be able to avoid a double hit on your U.S. tax return by claiming either a credit or deduction. But which is best? [Schwab]
The chart above illustrates a notable increase in US light vehicle incentives in December 2023, surpassing $2,500. This marks a significant uptick, nearly doubling the incentives observed in December 2022.
Business Strategy
- He Revived Old Spice. Can This CEO Save a Sneaker That Lost Its Cool: Bracken Darrell is trying to engineer a turnaround at Vans’s parent company. Step one was figuring out where it went wrong. [WSJ]
- Tiger Woods, Nike Announce End of 27-Year Partnership: Tiger Woods announced Monday that his longtime partnership with Nike has ended after 27 years, closing one of the most iconic brand relationships in professional sports history. [ESPN]
- Flying in America Has Actually Never Been Safer: U.S. airlines have gone nearly 15 years without a fatal crash—and it’s not just luck. The revolution in the skies began with an innovative program that has become a model for the rest of the world. [WSJ]
The chart indicates a trend among the top US advertisers, showing an overall increase in their total advertising spending. However, there’s a noticeable shift away from TV advertising.
Life & Work
- Elton John’s First Auction in 21 Years Has It All: Boots to Banksy: The 900 items from his Atlanta home include blue-chip art by Julian Schnabel and Richard Avedon, Versace dinnerware and flamboyant costumes. [WSJ]
- A New Way to Treat Back Pain: Many people feel pain even after a physical injury has healed or when doctors can’t find a physical cause. The approach, called “pain reprocessing therapy,” tries to train the brain not to send false pain signals. [WSJ]
- Powerful Winter Storm to Batter Much of the U.S. This Weekend: Airlines cancel more than 1,800 flights as blizzards sweep across the Midwest. [WSJ]
Vail Resorts have experienced 52% less snowfall compared to last year.
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