QVMM - Could 2024 Be The Year Of A Goldilocks Economy?
2024-01-24 21:50:00 ET
Summary
- After two years of surging inflation, are we going back to Goldilocks?
- Investors loved the low inflation environments of the 1990s and 2010s, which delivered huge returns for equities, but they haven’t enjoyed the post-pandemic stock gains as much.
- Stocks fell sharply in 2022, and although they rebounded last year, they haven’t passed their old highs.
By Erik Norland
At a glance
- During the 1990s and again in the 2010s, equity and bond investors celebrated a Goldilocks economy, with low inflation and steady growth
- While equities did well in 2023, their rally was narrow, driven by only a handful of large tech and consumer discretionary stocks, while most other stocks including small caps were largely left behind