2023 Annual Market Review

Overview

Global markets confounded expectations in 2023, capping a strong year of returns with additional gains in December as geopolitical risks subsided and optimism for a soft landing grew.

UK investors in global stocks ended the year with a 17.6% total return in GBP, with December contributing 4.8%.

The UK ended the year as the worst performing equity market however, with the outperformance of the previous year unwinding as the market moved away from value orientated stocks.

Fixed Income assets were volatile throughout the year, with UK and US 10-year yields hitting multi-year highs mid-year as inflation appeared to remain stubborn, however both countries saw yields drop rapidly towards year-end as data improved

Energy prices remain a key determinant to inflation data, and reduced geopolitical risk allowed Oil to be one of the few major asset classes falling over the year.

Looking forward to 2024, politics is likely to dominate news later in the year, with both the UK and US moving towards Presidential and General elections.

Full update below…