Another tumultuous year for markets has come to an end. We began 2023 with a financial crisis in the US following the collapse of Silicon Valley Bank and ended with fresh conflict in the Middle East.
Although US interest rates ended the year broadly flat year-on-year, there was huge volatility in between. The US 10-year rate hit 5% in October before dropping to 3.9% by year end after the US Federal Reserve signalled a pivot from rate hikes to rate cuts in 2024. Global economic growth proved to be far more resilient than expected. When combined with falling inflation, this led to a shift in global economic outlook from one of recession to a consensus view of a “soft landing”. This boosted performance in more cyclical sectors like global industrials and materials over the fourth quarter, supporting performance of the Columbia Threadneedle Sustainable Outcomes Global Equity (CTSOGE) strategy, which is overweight both sectors.
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Download the full report to find out more around an explosion in AI and excitement around obesity treatments and the potential subsequent outcomes from this, as well as a look back at COP28 and a growing global consensus for fossil-free energy.