Many had predicted that 2023 would be an extremely difficult year for the financial markets, but instead, both the stock and bond markets demonstrated remarkable resilience adapting to the new realities of higher interest rates and persistent inflation. After a challenging 2022, we saw a strong rebound with the Russell 3000 up over 25%, the MSCI World ex USA Index up 17.9%, and the US Aggregate Bond Index climbing over 5.5%. The year saw a welcome moderation in the rate of inflation, heightened geo-political tensions, troubles in the banking sector, and a narrowly averted US government shutdown.
2023 provided a stark reminder that successful long-term investment strategies cannot be based on predictions. At Core Wealth Management we work with our clients to structure investment programs that plan for the possibilities – not ones that are based on forecasts coming to fruition.
We encourage you to read this article from Dimensional Fund Advisors, Market Review 2023: Rising Stocks Left Predictions Grounded, for additional insight on 2023 market performance.