This week, the Exencial investment team conducted a webinar for clients, summarizing the market conditions of the past year and offering their perspectives for the beginning of the first quarter of 2024.
Chief Investment Officer Tim Courtney kicked off with a discussion about last year’s market conditions, characterized by falling inflation and an increase in valuations in the U.S. large-cap growth space, which were largely influenced by advancements in AI. Tim makes the rationale on why interest rates should stay a bit higher for longer despite significant public and political pressure for rate cuts. Finally, he highlights the positive and negative market considerations heading into 2024.
Pete Trontis, Senior Portfolio Manager, then delves into his perspective on the equity markets, noting the market expects fiscal spending to remain elevated, which should continue to support the economy. Senior Portfolio Manager Jeff Hibbeler then discussed the fixed income markets. He explained why 2023 was a volatile year for fixed income, but that Federal Reserve Chair Powell’s dovish pivot in December has supported the sector in the last few months.
Jon Burckett-St. Laurent, Senior Portfolio Manager, concluded the presentation with his insight into the options market. His outlook is positive overall, explaining that sentiment changes drive the most year-to-year variability in the markets. As such, the Exencial team pays closer attention to economic growth and corporate earnings.
If you have any questions about current market conditions, please reach out to your Exencial advisor.
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