January Financial Market Update with John Mateyko, APMA®, WMCP™, RICP®
January Financial Market Update with John Mateyko, APMA®, WMCP™, RICP®
Blog Article
U.S. equity markets closed out 2023 with strong gains, continuing the momentum that began in October. For long-term investors, a Santa Claus Rally wasn’t necessary—major indexes have already enjoyed a powerful, sustained uptrend.
Major Index Performance
In December, the S&P 500 rose by 4.42%, while the Nasdaq 100 jumped 5.51%, hitting a record monthly close. The Dow Jones Industrial Average also reached a new high, climbing 4.84% for the month.
S&P 500's Winning Streak
The S&P 500 notched its ninth straight week of gains, ending December just 0.6% below its January 2022 all-time high. The rally has been led by the “Magnificent Seven” tech giants, with AI excitement fueling growth. Many investors anticipate that 2024 will focus on AI implementation across sectors.
Bond Market Rebound
After a challenging stretch, bonds delivered their strongest two-month rally in decades. Optimism around potential interest rate cuts in 2024 lifted bond prices, especially as the Federal Reserve signals a more dovish stance.
Small-Cap Stocks Reawaken
Small-cap equities, tracked by the Russell 2000 Index, surged 12.05% in December, making up for a year of underperformance. Investors are taking a fresh look at these stocks, encouraged by more attractive valuations and renewed momentum.
Positive Employment Data
November's jobs report showed the addition of 199,000 jobs, exceeding expectations and offering a "Goldilocks" scenario—strong but not overheating. Key sectors like healthcare and government led job creation. The unemployment rate dipped to 3.7%, better than the forecasted 3.9%, with rising labor participation further boosting confidence in a soft landing for the economy.
Fed Holds Steady, Signals Shift
At its December meeting, the Federal Reserve held interest rates at 5.25%–5.50% for the third time in a row. However, it hinted at potential policy easing, projecting three rate cuts of 25 basis points in 2024. Markets responded positively, with stock indexes rising and Treasury yields falling.
Market Expectations Diverge from Fed Guidance
While the Fed signaled three rate cuts for 2024, market participants are pricing in six to seven. Historically, rate cuts have supported markets during economic slowdowns—yet current indicators show strength rather than contraction. The divergence highlights the difference between Wall Street sentiment and Fed projections.
Looking Ahead
December wrapped up a powerful rally that began in November. As we enter January, markets remain optimistic but may be due for a short-term pullback. For investors with capital on the sidelines, such corrections could present new opportunities.
About John Mateyko
John Mateyko is an experienced financial advisor with over two decades in the industry. Based in Serenbe, Georgia, he serves as Managing Partner of IDEX Financial, a firm he founded in 2010 to focus on customized retirement income strategies.
A graduate of Augustana College with a degree in business studies, John has worked with leading firms like Morgan Stanley, JP Morgan Chase, and US Bank. His expertise in portfolio management is backed by multiple certifications, including Fiduciary Financial Planner, WMCP, RICP, and APMA. He is also pursuing the Certified Investment Management Analyst (CIMA) designation through Yale School of Management.
About IDEX Financial
Founded in Chicago and now headquartered in Serenbe, Georgia, IDEX Financial is a boutique investment firm specializing in personalized retirement planning. Under John’s leadership, the firm helps clients navigate financial complexities with tailored strategies designed for long-term security and confidence.
Beyond his professional role, John is deeply committed to community involvement and family life in Serenbe—a town known for its commitment to wellness, nature, and strong community values.
With robust market performance, improving employment data, and a more dovish Fed, investors are heading into 2024 with cautious optimism. Guided by seasoned professionals like John Mateyko, individuals can take advantage of current opportunities while planning thoughtfully for the future.
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