The markets took investors on a turbulent ride in 2023, outperforming expectations for the better part of the year and ending on a high note. With one exception – commodities – last year turned out to be an impressive year for risk assets.
As we look down the open road of a new year, the question is whether the rally that began in 2023 will continue into this year. While there are still plenty of risks (more on this below), there are good reasons to believe the rally has staying power. Still, investment opportunities may look different this year if, as we expect, the rally broadens to sectors and smaller companies that have lagged.