It was a great year for the stock market and for the vast majority of investors in workplace retirement accounts. But let's not get carried away.
Even after the 2023 gains, most stock investors are only barely above water since the start of 2022.
It looks better when you include dividends. Then, the S&P 500 returned 3.42 per cent over the course of the two calendar years.
Even so, the paltry stock market rises haven't kept up with inflation.
If you can stand the pain, recall the simultaneous declines in the stock and bond markets that made 2022 a terrible year for investors. It was arguably even worse than 2008, when the stock market collapsed during the great financial crisis. In 2022, bonds declined sharply in value as interest rates rose, while during the financial crisis, investment-grade bonds rallied as interest rates declined.
Lately, the markets have been much kinder to investors, with both stocks and bonds holding their own.
The good returns for 2023 are, thanks in no small part to the brilliant performance of the last three months of the year, fuelled by growing expectations that the United States economy will avoid a recession, and that the Federal Reserve will soon begin to cut shortterm interest rates.
The final quarterly and annual numbers for 2023 were exceptionally good. They translate into substantial annual gains for millions of investors who hold stocks and bonds indirectly, through mutual funds, exchange-traded funds and trusts, often in workplace retirement accounts.
So if you have held broadly diversified investments that track the markets, endured the bad times of 2022 and persevered through 2023, you are probably doing okay.
You may even be slightly ahead of where your portfolio stood at the start of 2022.
Denne historien er fra January 21, 2024-utgaven av The Straits Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra January 21, 2024-utgaven av The Straits Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
VERDY'S APPROACH AN EYE-OPENER
Former Lions turned coaches Alam Shah and Isa inspired by stint with Japanese club
Lions' morale-boosting win comes at a price
The Lions got a much-needed morale booster ahead of the Asean Football Federation (AFF) Championship as they beat Tokyo Verdy 2-1 on Oct 11 in the second of three friendlies against J1 League opponents in their Japan training tour.
Conditions to blame for 'ugly' draw, says Messi
Argentina were held to a 1-1 draw by Venezuela on Lionel Messi's return, as Brazil got their 2026 World Cup qualifying campaign back on track with a last-gasp 2-1 victory over Chile on Oct 10.
Belgium punish Italy at set pieces in 2-2 draw
Italy coach Luciano Spalletti blamed bad luck, as Belgium bounced back from two goals down to draw 2-2 with his 10-man side in Rome on Oct 10 to boost their hopes of reaching the Nations League quarter-finals.
CARSLEY'S MIDFIELD OVERLOAD BACKFIRES
England temp boss dismayed by mistakes as Three Lions lose to Greece for first time
Player strike in England unlikely: Sports law expert
The chorus of frustrated players and managers speaking out against football's gruelling fixture schedule continues to grow, with Liverpool defender Ibrahima Konate the latest to say he would support players' right to strike.
SOCCEROOS HAVE NO FEAR
They head to Japan with confidence despite never having beaten the Samurai Blue there
Toyota back in F1 with Haas tie-up
The United States-owned Haas Formula One team and Toyota announced a multi-year technical partnership on Oct 11, in a move bringing Japan's biggest carmaker back to grand prix racing for the first time since 2009.
SABALENKA TO STICK TO HER BRAVE PLAN
World No. 2 will be aggressive in Wuhan semi against Gauff; Fritz takes on Djokovic
Nadal's beauty lay in his purity as a competitor
To appreciate the retiring Rafael Nadal we can flip through record books, hunt down Uncle Toni, sift the clay for archaeological clues, speak to Roger Federer's therapist, delve into the physics of spin, but really it's best if we start with a dictionary.