2023 Stock Rally Greeted by Naysayers in 2024

By almost any measure, 2023 was a terrific year for stock prices. The Standard & Poor’s 500 index finished up 24%, closing out the year with a nine-week winning streak.¹

But throughout January, the naysayers were out in force trying to talk down the stock market's potential. Here’s a sampling of some January 2024 headlines from CNBC.

• "The ‘Santa Clause Rally’ is in trouble, and that may signal weaker stocks."
• " ‘Big Short’ investor Steve Eisman worries about bullishness level on Wall Street."
• "Why it could be a ‘lose-lose’ situation for Wall Street when Fed does cut rates."

The accompanying chart helps illustrate the danger of believing headlines when financial markets appear unsettled. In October, many Wall Street pundits were saying, "Interest rates are going higher," and investors should prepare. But by the end of the year, you can see that the 2023 roundtrip in interest rates was nearly complete.

As we kick off the New Year, remember to keep your focus on a disciplined, carefully constructed portfolio approach that takes into consideration your goals, time horizon, and risk tolerance.

Will 2024 bring some volatility? That’s almost certain. But portfolio decisions should follow careful guidance and insight, not knee-jerk reactions to market cycles or one-day headlines.

 ^{1. WSJ.com, December 29, 2023. "What Did Wall Street Get Right About Markets This Year? Not Much."}

^{The S&P 500 Composite Index is an unmanaged index that is considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.}