2023 proved to be a strong year for risk assets across global capital markets. All major asset classes rebounded significantly from the declines seen in 2022. US equities led the rally, especially large-cap tech stocks, though a lack of breadth left many smaller companies behind. Economic data suggested the US achieved a "soft landing" with cooling inflation allowing the Fed to pause rate hikes. However, the housing market suffered from spiking mortgage rates. Commodities were mixed as oil fell but gold rose. Going forward, the outlook hinges on whether inflation stays tamed, enabling US and European central banks to begin reducing interest rates.
