Kovitz Newsletter 4Q23
MARKET INSIGHTS
2023 will be remembered as the year that pundits, forecasters, the media, strategists, and plain, old, ordinary people tried to conjure a recession into existence through sheer force of will...Whoops! If you have ever seen that old episode of the UK version of Family Feud where the guy answers “turkey” to every single question in the final round, that’s the equivalent of what happened to the doomsayers in 2023.
CORE EQUITY COMMENTARY
In this commentary, we will first examine the performance of Core Equity in relation to the S&P 500 benchmark, offering insights into our strategic positioning in the 2023 financial market. We will then provide a recap of the year's market dynamics, followed by a summary of our portfolio performance and activity. Concluding the commentary, we will reflect on the wisdom of the late Charlie Munger, highlighting his enduring impact on our investment approach.
FIXED INCOME COMMENTARY
2024 presents a unique inflection point for the fixed income market. While the Fed's dovish pivot sparks renewed optimism, the lingering concerns of economic turbulence and historical missteps by the central bank warrant a cautious approach. Amid these uncertainties, the convergence of high starting yields, moderating inflation, and the potential easing by the Fed presents compelling opportunities for core bond investors. By prioritizing long-term stability, focusing on high-quality credit, and actively managing portfolio duration and structure, we believe investors can capitalize on the opportunities in fixed income that lie ahead.
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