Posted 1/13/2024, 10:00:51 AM
Stocks Rebound in 2023 But Investors Only Slightly Ahead Over Last Two Years Due to High Inflation
- The stock market had a great 2023 after a terrible 2022, but long-term gains have barely kept pace with inflation
- Even after 2023 gains, most stock investors are only slightly above water since early 2022 once you account for dividends
- 2022 saw declines in both stocks and bonds, arguably worse than 2008 since bonds typically rally when stocks fall
- Markets have improved lately as expectations grow that the Fed will cut rates and the US will avoid recession
- The stellar stock market gains in the last 3 months of 2023 were a key driver of the turnaround