Issue link: https://info.seic.com/i/1513994
FOURTH QUARTER 2023 SEI Forward. © 2024 SEI ® 1 2023 went out on a high note as the global central bank interest-rate-tightening cycle was seemingly brought to a close with a dovish pivot from the U.S. Federal Reserve (Fed) and interest-rate-hike pauses from the European Central Bank and the Bank of England. The market was quick to celebrate as risk assets rallied, yields fell, and financial conditions eased substantially. This latest move higher is a fitting end to a wild year that witnessed aggressive monetary policy tightening through mid-year, a legitimate banking crisis, continued weakness in China, conflict in the Middle East, and, most recently, the rerouting of global shipping lanes and heightened tension in the Red Sea. Despite that laundry list of headwinds, global equities delivered solid returns, with the U.S. as a clear standout. A fever pitch of excitement over artificial intelligence and high expectations for interest rate cuts in 2024 were the key drivers of market performance. Tales of the tape Fourth quarter and 2023 notables James Smigiel Chief investment officer -4.63% 8.10% 9.75% 11.69% -7.91% 4.18% 15.62% 26.29% -15%-10% -5% 0% 5% 10% 15% 20% 25% 30% 35% Commodities Global treasuries Global ex-U.S. equity U.S. equity Return Year Quarter U.S. tech sector Equal weight S&P 500 U.S. small cap stocks Gold Bitcoin Quarter 17.17% 11.87% 14.03% 9.89% 52.72% Year 57.84% 13.87% 16.93% 7.14% 158.44%