Key Points
- Risk assets enjoyed mostly positive returns in CY 2023. Developed markets equities led as fears over the severity of a possible recession moderated and inflation declined.
- Emerging markets equities lagged developed markets as economic growth in China disappointed.
- Large-cap technology stocks led the US market on positive developments in AI technologies and anticipation of lower interest rates.
- Bonds posted strong returns as the market began to anticipate policy rate cuts in CY 2024, driving yields down.
- Interest rate–sensitive real assets rebounded. Commodities lagged on lower oil prices due to slowing demand.