2023 Market Surprises and 2024 Outlook: Lessons, Volatility, and Soaring Stocks
Morningstar's Christine Benz shares five key portfolio lessons from 2023. First, investors should not fight the Fed, as the central bank's actions heavily influenced both stock and bond markets. Second, investors should not settle for low yields and should shop around for higher rates, especially on cash instruments. Third, retirees should hold some liquid reserves to avoid drawing from assets that have diminished in value. Fourth, patience is a virtue, particularly for investors in value stocks, small-cap stocks, and non-U.S. stocks. Finally, investors don't need to make narrow bets on hot sectors; owning the broad market can be a better strategy.