TEMPERAMENTAL – 4TH QUARTER, 2023
By Derek Skomorowski
The “buy everything” rally, they call it. Or the “Santa Claus” rally at this time of year.
After all the recession talk, doomsaying on banking crises, tightening financial conditions, hemming and hawing over “unsustainable hawkishness” and “crushing policy,” here we are sailing into the new year with a buying frenzy that makes you wonder – was Santa stuffing stockings with stocks this year??
Of course, it’s fun making money in these buoyant markets, but for anyone looking to generate attractive long-term returns – returns that last longer than, you know, a few months – it’s kind of the opposite of what we should hope for. Your EdgePoint Portfolios crave uncertainty and capitalize on volatility. Cheery conditions can leave a guy with a lingering grumpy face through the holidays.
But these conditions are a snapshot in time. This past year was, well, fun. A lot of fun. The past 12 months had more than their share of ups and downs. It’s easy to forget we had a similar “buy everything” rally in January to start the year, and markets were bumping along at all-time highs through the better part of summer. In both instances, the frothy conditions didn’t last, and ripe buying opportunities were right around the corner.
Download: Temperamental
Comments are closed.