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Market Commentary | Jan 23, 2024

4Q2023 Market Commentary: Ring Them Bells

Michael J. Aroesty


“Ring them bells for the blind and the deaf
Ring them bells for all of us who are left
Ring them bells for the chosen few
Who will judge the many when the game is through"

  • Bob Dylan, Ring Them Bells

The Powell Pivot

The bell heard following the Federal Reserve Open Market Committee’s (FOMC) meeting on November 2nd sounded a lot like a dinner bell for the bulls on Wall Street. The meeting’s minutes showed a slight deviation in language, with Committee members suggesting we are moving from a period that required “sufficiently restrictive” monetary policy to reduce inflation, to a period where the FOMC believes it can “proceed carefully on the totality of incoming information and its implications for the economic outlook.” A subtle, but effective change in messaging. The dovish outlook continued when the Committee released their “dot plot” (committee member’s forecast for future interest rates) by projecting three 0.25% interest rate cuts by the end of 2024. The slight change in language and small reduction in projected policy rates was all the market needed to surmise the Fed’s game of interest rate hikes was through.

The S&P 500 responded with a 9-week win streak, rising +16% over the final two months of the year. With an end to restrictive policy in sight, investors across asset classes responded with a broad and powerful rally to finish 2023.

Click Here to read the remainder of the 4Q2023 Market Commentary.

This material has been provided for general, informational purposes only, represents only a summary of the topics discussed, and is not suitable for everyone. The information contained herein should not be construed as personalized investment advice or recommendations. Rather, they simply reflect the opinions and views of the author. D. B. Root & Company, LLC. does not provide legal, tax, or accounting advice. Before making decisions with legal, tax, or accounting ramifications, you should consult appropriate professionals for advice that is specific to your situation. There can be no assurance that any particular strategy or investment will prove profitable. This document contains information derived from third party sources. Although we believe these third-party sources to be reliable, we make no representations as to the accuracy or completeness of any information derived from such sources, and take no responsibility therefore. This document contains certain forward-looking statements signaled by words such as "anticipate," "expect", or "believe" that indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that the expectations, beliefs, views and opinions expressed in this document will come to pass. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. All investment strategies have the potential for profit or loss. Asset allocation and diversification do not ensure or guarantee better performance and cannot eliminate the risk of investment losses. The impact of the outbreak of COVID-19 on the economy is highly uncertain. Valuations and economic data may change more rapidly and significantly than under standard market conditions. COVID-19 has and will continue based on economic forecasts to have a material impact on the US and global economy for an unknown period.

Michael J. Aroesty


Chief Investment Officer

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