Happy New Year!

 

As we kick off 2024, let's take a look back at what happened in 2023 and look ahead into how we feel about 2024.

 

A year ago, we wrote about the quirky illusion of the Rabbit and the Duck, using them as symbols for economic reflection and market foresight. The duck, ever gazing backward like economic factors, met the rabbit, representing the markets, always hopping forward in search of opportunities.

 

We weren't trying to be fortune-tellers predicting 2023 to be a breeze. Instead, it was a nudge that resilient companies weather storms and emerge stronger. Lo and behold, 2023 unfolded with lingering uncertainties—geopolitical drama, inflation continuing to stick around, and central bankers aggressively hiking interest rates in an attempt to fight this sticky inflation.

 

Yet, against the odds, the TSX ended the year up 8.12%, the Dow Jones up 13.78%, the S&P500 sprinted ahead by 21%, and Europe/Australasia/Far East joined the party with a 15% surge.

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Economists braced for turbulence, but the markets decided to break out into a bullish celebration.

 

These results though concentrated for the most part did help to cement the idea that while news cycles are very negative the markets typically turn well ahead of any indicator.

 

Lesson learned: Focus on the long game. While the immediate future might throw curveballs, the markets are typically scouting for growth opportunities.

 

If 2022 was the year of uncertainty, 2023 started to show signs of peering into the next market cycle. Amid lingering global questions, we once again emphasize that well-managed companies will continue to prosper no matter the economic shifts.

 

In the words of the late Charlie Munger, "The big money is not in the buying and selling but in the waiting”

 

Market timing may be elusive, but our time in the market is within our control. The longer we stay invested, the better our odds of success.

 

We look forward to all that 2024 holds for us and as always Peter and I are happy to review your accounts and discuss why we continue to remain positive on the long term outlook for global equity markets