By Joel Heymsfeld

Published January 11, 2024

The New Year is already off and running, and we all at Princeton Global wish you a healthy and prosperous 2024. The financial markets staged a strong rally in November and December to conclude a solid year of returns, which we review in our attached quarterly letter.

In our letter, we discuss:

  • The contrasting market sentiments to begin 2024 compared to last year. With low expectations, “less bad news” was enough to propel markets in 2023. This year, we need a favorable economic environment, which may be challenged at times but is our considered expectation.
  • Following several years of volatility, we anticipate “normalization.” Normalization doesn’t sound exciting, but the scenario supports solid returns and broader stock participation in gains.
  • Empirical data supports a constructive outlook, including early innings of a bull market recovery, presidential election year returns, and tremendous cash on the sidelines, causing FOMO if the markets rally.
  • We are pleased with the low turnover in our portfolios, which positively impacts performance. We remain confident in our “infrastructure everywhere” theme while looking for valuation opportunities in other sectors and styles.
  • We feel that expectations of numerous rate cuts are overly optimistic and that the recent decline in yields may be temporary. We anticipate opportunities to extend bond maturities in the year’s first half.

Please contact us if you want a copy of the entire letter.

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