We entered 2023 bracing for an economic slowdown. The rapid resetting of monetary policy after more than a decade of near-zero interest rates, had battered equity and fixed income markets, and high inflation was beginning to creep into corporate results. Surely a slowdown in consumer spending and increased unemployment were to follow.

But as the year comes to a close, the U.S. economy has proven remarkably resilient, and recession expectations have been delayed. What comes next is not clear, as we begin 2024 with more questions than answers about where the economy is headed and how it will impact financial markets.

However, the good news ringing in the new year is we believe many of those outstanding questions will be answered. Investors should gain much of the clarity that has been missing since the onset of the pandemic nearly four years ago.

Strategy Insights First Quarter 2024