Last week, US stock markets posted gains for the ninth consecutive week, capping off an impressive year for stocks and bonds. The S&P 500 finished the year up 26.29%, just shy of its January 2022 record. The Dow Jones Industrial Average gained 16.18%, topping 37000 for the first time. Bond markets reversed their losses going into October and finished the year up 5.53%. The 2023 stock and bond returns defied the doom and gloom many anticipated at the beginning of the year. Disciplined long-term investors were indeed rewarded for staying the course in 2023.
As we ring in the New Year, we try to set aside bad habits and focus on our resolutions. Investors should adopt a similar approach. 2024 will present numerous distractions — from elections and wars to interest rate policy changes and the inevitable unknown — that could tempt investors to time the markets or take unwarranted risks for fear of missing out (FOMO). Prudent investors will maintain a suitable risk and return allocation throughout market fluctuations. Our advice for 2024 is to sift through the noise and stay focused on your long-term goals. At Unify Financial Advisors, we are committed to guiding you through this year and providing financial peace regardless of the circumstances.
Thank you for reading, and Happy New Year!
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