Asset Class Performance in 2023 and into 2024

Harry MamayskyAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

As 2023 enters the home stretch, I reflect on asset class performance for the year, and discuss what my firm’s models are saying for the next 12 months.

As the third quarter earnings season gets under way, let’s look back at the asset class winners and losers this year. The next chart shows asset classes with their 2023 year-to-date performance (orange bars) and their 2022 performance (blue bars). The asset classes are sorted from highest to lowest based on their performance in 2023.

asset class

The winners

The top performer in 2023 was NASDAQ, up over 30% (as well as its high-flying cousin QQQ). The reasons are well known – excitement about AI and strong operating performance – but often overlooked is the fact that the move in 2023 has not even retraced the losses that NASDAQ experienced in 2022, and the index is still well off its highs from late 2021. Close behind NASDAQ is the consumer discretionary index (XLY), but given that over 40% of the index consists of Amazon and Tesla, its performance is largely driven by the same set of considerations driving NASDAQ.