January 3, 2024

Treasuries rallied during the month across the curve, adding more fuel to the equity market rally. The S&P 500 advanced a respectable 4.5% for the month. However, small cap indices registered double-digit gains (12.0+ %), the best month since November 2020, as the Federal Reserve’s dovish pivot painted an “all-clear” sign for the markets.  Real Estate (+8.7%) and Industrials (+7.0%) were the best performing S&P sectors for the month while Energy (0.0%) was the laggard for a second consecutive month.  From a style perspective, value outperformed growth across all market-cap ranges, and the S&P 500 equal weight index outperformed the market cap weighted index as investors broadened their stock selection processes beyond a handful of mega-cap technology stocks (Magnificent Seven).