Q4 Market Commentary: A Look Back
MODERNIST’S ASSET CLASS INVESTING PORTFOLIOS ARE STRATEGICALLY INVESTED WITH A FOCUS ON LONG-TERM PERFORMANCE OBJECTIVES. PORTFOLIO ALLOCATIONS AND INVESTMENTS ARE NOT ADJUSTED IN RESPONSE TO MARKET NEWS OR ECONOMIC EVENTS; HOWEVER, OUR INVESTMENT COMMITTEE EVALUATES AND REPORTS ON MARKET AND ECONOMIC CONDITIONS TO PROVIDE OUR INVESTORS WITH PERSPECTIVE AND TO PUT PORTFOLIO PERFORMANCE IN PROPER CONTEXT.
As evidence-based investors, we use an approach fueled by data with over 50 years of research, rooted in diversification and tax conscious investment options. Time has proven the value of investing. While these quarterly market reviews are helpful for staying informed, we also love to remind our clients and community: focus on what you can control, remember the big picture, and stick to your plan.
Market Snapshot:
Stock markets rallied in December on the prospect of potential Fed rate cuts in 2024. The Magnificent Seven* stocks, buoyed by the potential of artificial intelligence, now comprise roughly 30% of the value of the S&P 500. Fortunately, the rest of the market valuations are much closer to their historical averages.
In the bond market, yields remain elevated, although down from the middle of 2023. Bonds continue to offer an attractive yield for high-quality income for investors, and for investors concerned about unexpected inflation, Treasury Inflation Protected Securities (TIPS) offer positive real yields.
Thanks to our reliance on long-term evidence-based investing principals, we know that short term data is too noisy to determine our investing choices. Yet, we always like to offer our review of markets because we believe this information should be accessible to all!