Q4 and 2023 Economic Wrap Up

February 2, 2024

The U.S. economy held up much better in 2023 than many expected it would. While an upcoming recession is not completely off the table, it is possible that the Fed has managed to engineer a soft landing for the economy despite raising rates significantly over the past few years.

The U.S. stock market seems to have heard that signal loud and clear as it surged over 11% during the fourth quarter to complete a strong year of performance overall. The S&P 500 index, including the reinvestment of dividends, finished up 26.29% during 2023.

Read the Economic Outlook Report.

More About Economic Updates
Despite things pointing to more of a downer, Q3 turned out better than expected. See what factors played to a stronger third quarter.
As the economy finds its footing, inflation begins to slow and the job market remains strong, things are looking up. However, many factors are in play for Q3 and Q4.
Let’s review the events of 2022 and how they’ve led to our current state of continuing market volatility and stubborn inflation. Even so, we still believe in the stock market over the long run.
Markets were volatile in the third quarter as investors tried to guess how the Fed would act to address inflation. While the current choppiness may continue in the near future, we still believe in the market over the long run.
The second quarter saw unrelenting inflation and a volatile stock market. Not all economic indicators were negative, however. Job growth remains strong, unemployment is down and business sentiment remains optimistic.
The global economic recovery experienced a few hiccups during the last few months. But economists are expecting things to get back on track as COVID-19 cases continue to decline. They’re projecting strong growth for the rest of this year and for 2022.
With 2021 half over and most states fully reopened after pandemic shutdowns, the economy continues to rebound. Economists are expecting strong GDP numbers for the rest of the year and a historically strong 2021 overall.

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