Investors around the world maintained an optimistic outlook for the future throughout the early months of 2024, pushing several markets to new heights. For the first time since its peak in 2021, Nasdaq joined S&P 500 and Dow Jones reaching new records.

As we leave 2023 behind, it’s encouraging to reflect on a year of resilience and recovery in the investment landscape. Following a historically bad returns of 2022 across both stock and bond market, last year turned out to be a great year for those investors who were able stick to their long-term plans, accomplishment not taken lightly.

Good performance from the first half of 2023 did not carry over into the third quarter, and as the summer was kicking in, the stock market erased some of the earlier gains. The market peaked in July at +20% and since then dropped to +12% YTD. With negative performance and sentiment, the volatility came back as well. The actual economy did much better than the market, and the GDP is expected to grow around 5.4% in Q3.

After a good stock market performance in the first quarter, second quarter marked the start of new bull market as stocks grew more than 20% from the last year lows. Relief came after the US avoided default by increasing the debt ceiling in June, while big tech companies continued to benefit from the enthusiasm surrounding anything AI related.

Markets started 2023 on a good note after positive inflation and jobs reports in January. However, when Fed’s chair Jerome Powell made several public comments about the need for high interest rates and when Silicon Valley Bank failed in March, the volatility and fears of deep recession quickly returned.