The Quarter in Review
- 2023 delivered strong returns from both stocks and bonds as markets rallied in Q4
- Both stocks and bonds benefitted as investors came to believe that central banks would begin lowering interest rates in 2024
- Enthusiasm about artificial intelligence (AI) and technology continued to fuel equity markets, particularly in the US
- Inflation statistics in most developed countries sent mixed messages, with inflation lower than a year ago, but seemingly stuck above central banks’ target levels
- Many commentators are hopeful that 2024 will bring a “soft landing” in which economic growth slows just enough to bring down inflation, without leading to a recession or a significant rise in unemployment
- Measures of consumer and business sentiment in Canada suggest that the risks to this optimistic scenario may be on the side of slower growth
- Economics, politics or geopolitics could each be a source of volatility in 2024, but rather than focusing on short term ups and downs, investors should ensure that their portfolios are aligned with their long-term goals
Read more in our Q4 2023 Market and Economic Update.