Here are six charts that capture some of the key market dynamics as the year unfolded:
Exhibit 1: There were 9 important inflection points in market performance over the course of the year
Exhibit 2: The Technology sectors contributed c.75% of the total market return (19.1%/26.1%)
Exhibit 3: The almost 90% return from the ‘Mag 7’ stocks enabled the headline FT Wilshire 5000 index significantly outperform the Equal weighted index which returned 14.9%
Exhibit 4: The two largest stocks (Apple and Microsoft) closed out 2023 with a combined weighting of 12.3% - the highest level of concentration seen over the last 40 years
Exhibit 5: Large Cap Growth Style outperformed Value by 35% in 2023 more than reversing the underperformance of 2022.Large Cap also significantly outperformed Small Cap over the year
Exhibit 6: The US benefitted the most from the contribution of PE expansion to market return in 2023
Source: Wilshire Indexes, Factset. Data as of December 31, 2023.
