What a difference a year makes.
A year ago, as I sat down to write my annual letter to our subscribers, I welcomed the end of 2022 which hadn’t been kind to investors.
Things are different this year. Yes, much of 2023 wasn’t great. And we had a modest rally in the early summer only to see it all blow away in September and October.
Yet, 2023 is ending in a good place.
Most importantly, we seem to have pulled off the soft landing that many market watchers thought was impossible or at least improbable: inflation has dropped to 3.1%, unemployment is historically low at 3.7%, wages are up modestly, pandemic-driven supply chain issues have been resolved, GDP grew at an annualized rate of 4.9% in the third quarter, and the Fed has publicly speculated about as many as three rate cuts next year. Those are some strong market indicators.
Of course, it’s not all good news. Gas and grocery prices have fallen but are still elevated compared to pre-pandemic levels, as are mortgage rates. Those have a disproportionately significant impact on consumer sentiment, even while sentiment among professional investors turned bullish much sooner.
All in all, the pieces fell into place to produce strong market performance in the last quarter of the year and there are no evident signs for concern. And we still have more than $5 trillion sitting in money market funds. Much of that will almost certainly come back into the market, pushing up prices and making money for those who are already in the market.
At one level, Cabot is in the business of providing research, insights, and investment recommendations. At a higher level though, we are in the business of earning and keeping your trust. We never forget that.
We do that by providing advisory services that rank among the best in the industry and by providing great customer service. (I’m not saying we’re perfect, but when we make mistakes, we do our best to fix them promptly and make things right.)
Another way we strive to earn and keep your trust is our “no BS” rule. We don’t hold ourselves up as experts on things that aren’t related to investing like military conflicts and politics. We don’t rely on hype and high-pressure sales tactics.
We don’t trade in conspiracy theories or other fantastic stories designed to scare you. You won’t read about us being sued by the SEC or the FTC. Every Cabot employee signs our ethical code of conduct. And we are recognized by the Better Business Bureau with an A+ rating.
This has been a successful formula that has worked for us for more than 53 years. And it is why hundreds of thousands of investors have relied on us to help them be more successful investors.
Cabot Wealth Network doesn’t manage investments or offer personal investment advice. Investing always entails the risk of loss and past performance is never a guarantee of future profits. But, as I always say, over the long run, the stock market is the best investment out there and always provides opportunities to make money, even when the overall market is down.
We are genuinely enthusiastic about prospects for investors in 2024, and on behalf of the entire Cabot Wealth team, I look forward to helping you invest successfully.
I wish you health, happiness and prosperity for the coming year.
Sincerely,
Ed Coburn
President & Publisher
Cabot Wealth Network
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