Broker Check
Market Briefs 2023 Q4

Market Briefs 2023 Q4

December 04, 2023

For the quarter, global markets were sent lower by rising interest rates and oil prices.
Stocks and bonds fell as investors feared a resilient economy would lead to higher interest rates for longer. In US equities, we saw a reversal in trend among the narrow group of stocks nicknamed the
“Magnificent Seven*.” These stocks associated with the artificial intelligence boom had provided the market with most of its gains to date; however, the weight of higher interest rates sent them lower during the quarter. Zooming out, surprisingly, even amid concerns of a potential U.S. recession, the S&P 500 is still up 13.1% year-to-date.

Within the S&P 500 sectors, technology stocks struggled while energy stocks gained on supply concerns for oil. Finally, higher interest rates sent real estate lower on fears of a slowdown in the housing market.

In international stock markets, a stronger U.S. dollar and weakening growth in Europe and China weighed on returns, with developed and emerging equities down by 4.1% and 2.8%, respectively,
during the quarter but maintaining positive returns for the year.

In the bond market, interest rates rose to their highest levels since 2007, sending bond prices lower. Bonds with lower interest rate sensitivity, such as the riskier high yield, performed best.

Finally, across other asset classes, commodities gained as supply cuts from key players sent oil prices higher for the quarter. Commodities remain negative for the year, however, on weaker
demand. Gold lost its shine, too, as the dollar and cash have held up well.

* Magnificent Seven are Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla.

This is for informational purposes only, is not a solicitation, and should not be considered investment, legal or tax advice. The information has been drawn from sources believed to be reliable, but its accuracy is not guaranteed, and is subject to change. Investors seeking more information should contact their financial advisor. Financial advisors may seek more information by contacting AssetMark at 800-664-5345.
Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns. There is no guarantee that a diversified portfolio will outperform a nondiversified portfolio. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss. Actual client results will vary based on investment selection, timing, market conditions, and tax situation.
It is not possible to invest directly in an index. Indexes are unmanaged, do not incur management fees, costs and expenses, and cannot be invested in directly. Index performance assumes the reinvestment of dividends.
Investments in equities, bonds, options, and other securities, whether held individually or through mutual funds and exchange-traded funds, can decline significantly in response to adverse market conditions, company-specific events, changes in exchange rates, and domestic, international, economic, and political developments. Bloomberg® and the referenced Bloomberg Index are service marks of Bloomberg Finance L.P. and its affiliates, (collectively, “Bloomberg”) and are used under license. Bloomberg does not approve or endorse this material, nor guarantees the accuracy or completeness of any information herein. Bloomberg and AssetMark, Inc. are separate and unaffiliated companies. AssetMark, Inc. is an investment adviser registered with the U.S. Securities and Exchange Commission. AssetMark and third-party strategists and service providers are separate and unaffiliated companies. Each party is responsible for their own content and services.
©2023 AssetMark, Inc. All rights reserved.
106545 | C23-20467 | 10/2023 | EXP 10/31/2025