Christmas is coming. The tree is lit. The stockings are hung over the fireplace. And we are looking forward to celebrating with family and friends. But even as we anticipate the joyous holiday ahead, the end of one year and the beginning of another, we like to take a moment to reflect on the year we had.
By all accounts, 2023 shouldn’t have been a great year for the markets. To start the year, interest rates were higher, inflation was not under control, and the stability and health of the economy was questionable. But Americans are resilient, as are many of the world-class companies that are based in this country. And we saw unprecedented growth from some of the biggest and most recognizable. The Magnificent Seven, as the media has dubbed them, are a group of companies that have returned an average of 70% year to date. This group includes Amazon, Apple, Alphabet, NVIDIA, Meta, Microsoft and Tesla. Of course, there are other companies that have had a great year as well, and the growth in the market has been broad, touching virtually every sector of the economy.
Good companies have a tendency to find success, regardless of the environment or economic headwinds they face. And even though we will always find reasons to be concerned about the future, especially with the ongoing conflict in Ukraine and Israel, we must remember that we control only the present. So let’s take some time this Christmas to bring more peace in our lives, thanking God for the blessings He has given us. After all, Jesus is the reason for the season, and He is the Prince of Peace.
We appreciate the trust you have placed in us, and we look forward to serving you in 2024. Blessings to you and your family this Christmas and in the new year ahead.
~ Steve Davenport, CFA