Market set to hold up well in 2024, but expect volatility

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By Rosenberg Research

Last year was an interesting year, to say the least. The large-cap S&P 500 finished 2023 at 4769.83, which was 24.23 per cent above 2022’s close and within 0.56 per cent of an all-time high. This was the index’s fourth yearly gain in five years. However, this performance hardly tells the full story.

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For example, the equal-weighted version of the cap-weighted S&P 500 rallied 11.56 per cent for the year, which is a bit more than 1,250 basis points below the better-known S&P 500. This divergence reflects the fact that the benchmark index’s performance was dominated by the heavily-weighted technology sector, particularly the so-called Magnificent Seven.