What we’re reading (12/29)
“What Did Wall Street Get Right About Markets This Year? Not Much” (Wall Street Journal). “The S&P 500 finished the year up 24%, just 0.6% from its January 2022 record. The Dow Jones Industrial Average advanced 14% to top 37000 for the first time and set seven record closes in the final days of 2023. A mania surrounding artificial intelligence and big technology stocks sent the Nasdaq Composite soaring 43%, its best year since 2020. It is a far cry from the doom and gloom many were bracing for at the start of 2023. A year ago, everyone from the strategists at Wall Street banks to rap artist Cardi B was calling for a recession. Instead, inflation continued falling, consumers kept spending and the unemployment rate fell to 3.4%, the lowest level since 1969.”
“The Stock Market Hasn't Seen A Winning Streak Like This Since 1985” (Business Insider). “The S&P 500, Nasdaq 100, and Dow Jones Industrial Average are set to notch nine-week win streaks that began on October 30…In 1985, the S&P 500 and Nasdaq 100 posted 11-week win streaks, according to data going back to 1971.”
“Five Investors On How To Navigate The Bond Market In 2024” (Wall Street Journal). “The model soft landing was engineered by the Alan Greenspan-chaired Fed in 1995: The central bank doubled the fed-funds rate to 6% before cutting it back, without spurring a slowdown. Notably, banks didn’t restrict their lending. Today, they are tightening terms on everything from individual borrowers to big corporations.”
“Tech Stocks Just Wrapped Up One Of Their Best Years In Past Two Decades After 2022 Slump” (CNBC). “Across the industry, the big story this year was a return to risk, driven by the Federal Reserve halting its interest rate hikes and a more stable outlook on inflation. Companies also benefited from the cost-cutting measures they put in place starting late last year to focus on efficiency and bolstering profit margins.”
“Tiger Global’s Coleman Regains Control Of Venture Unit After Losses, Client Complaints” (Bloomberg). “The rush to deploy almost $20 billion that Tiger raised near the height of the venture capital boom led to a 33% writedown of its private portfolio last year and an additional 6% this year, prompting questions about whether [Chase] Coleman had let the firm spin out of his control. Tiger announced last month that Shleifer, the driving force behind the VC expansion, will transition into a senior adviser role — the most significant management shakeup since the firm’s founding in 2001.”
