JP Morgan AM: 2023 has been a strong year across many asset classes
JP Morgan AM: 2023 has been a strong year across many asset classes
Market sentiment has been on a rollercoaster ride over 2023. Investors entered the year braced for recession after the hiking cycles of 2022. Bank failures in March saw credit conditions tighten sharply, but the US economy proved resilient and sentiment shifted to ‘higher for longer’ rates.
In the final months of the year, excitement has grown about the prospect of a soft landing and the market has priced in rate cuts as early as the first quarter of 2024. Optimism was boosted further at the December Federal Open Market Committee meeting last week, with the Fed’s “dot plot” now pointing to three rate cuts next year. For investors, the combination of economic resilience and less hawkish central banks have led to strong returns across the board, with all major asset classes set to end the year in positive territory.
