The year started just as we finished 2023 with stocks rallying, hitting new all-time highs for the first time in over two years. The S&P 500 finished January up about 1.6%, while bond yields drifted slightly higher with the 10 Year US Treasury yield closing the month at 3.99%. (YCharts)
Positive returns over the last few months have been welcome, but we’re always on the look out for risks and thought we’d highlight a few areas that we’re currently watching closely:
Corporate Earnings – we’re in the middle of the Q4 earning seasons and earnings data has been mixed with about 25% of S&P 500 companies reporting. We feel it’s important for corporate earnings to remain resilient in order to support the recent rally in stocks. We’ll continue to keep a close eye on earning reports as the pace picks up over the next few weeks.