Tactical Investment Committee (Jan 7, 2024)

The year begins with volatility showing no signs of easing compared to last month, which was marked by significant crosscurrents from de-grossing and unwinding activity. At first glance, the market seemed to enjoy smooth sailing, with the S&P 500 surging 24%, achieving its first consecutive annual gains of more than 20% since the Dotcom Bubble. However, a closer look reveals that 2024 was far from a steady march upward and we expect to see the hidden forces to unfold.