The Best And Worst Performing Assets Of December, Q4 And 2023

As DB's Henry Allen writes in his year-end Performance Review note, 2023 was an incredibly eventful year in markets, with plenty of forces for investors to navigate:

• In March, there was significant turmoil following the collapse of Silicon Valley Bank, leading to some of the biggest bond market moves in decades.

• In May, we saw growing excitement about the potential growth impact from AI, leading to a major outperformance from big tech stocks.

• Then from the summer, the prospect of interest rates remaining higher for longer led to a major bond selloff, which briefly pushed the 10yr Treasury yield above 5% for the first time since the GFC.

• Geopolitical events remained in focus too, particularly after Hamas’ attack on Israel in October. But from late-October onwards there was an astonishing rally across several asset classes, as declining inflation led investors to grow increasingly excited about a soft landing.

• That then got further momentum in December, particularly after the Federal Reserve signalled 75bps of rate cuts for 2024.

So despite several ups and downs along the way, most assets put in a strong overall performance in 2023: