Get Our Latest Insights in our Year in Review<\/a><\/span><\/strong><\/p>\n\n\n\n 2023 was a mixed bag of positive and negative events. In our free 2023 Year in Review, we take a closer look at the most impactful economic and market events and trends and offer our expert insights as to what all this means for investors in the year ahead.<\/p>\n\n\n\n Get your report now for our discussion of 2023’s key stories including:<\/p>\n\n\n\n \u2022 Inflation locks into a downtrend If you have $500,000 or more to invest, download our free review below!<\/p>\n\n\n\n Download Our Exclusive \u201cZacks 2023 Year in Review\u201d2<\/sup><\/a><\/span><\/strong><\/p>\n\n\n\n Santa Brought Lower Inflation and Higher Stock Prices<\/strong> \u2013 A normally closely-watched inflation gauge went under the radar for November, given its release date of the Friday before the Christmas holiday. But it should have made big headlines. The personal-consumption expenditures (PCE) price index, which is the Federal Reserve\u2019s preferred inflation gauge, fell 0.1% from October to November, the first decline since the pandemic (April 2020). On a year-over-year basis, prices rose 2.6%, which is a stone\u2019s throw from the Fed\u2019s 2% target. As we\u2019ve pointed out in this newsletter before, however, it\u2019s worth remembering that the Federal Reserve wants 2% average inflation over time, which implies that sometimes inflation could technically run above or below the target. Core prices, which exclude food and energy, rose 1.9% on a 6-month annualized basis, which all but confirms the Federal Reserve is indeed done raising interest rates in this cycle. As seen from the chart below, inflation remains firmly locked in a downtrend.3<\/sup><\/p>\n\n\n\n Personal Consumption Expenditures Price Index, Year-over-Year % Change<\/em><\/strong><\/p>\n\n\n\n Is the U.S. Housing Market Poised for a Rebound in 2024?<\/strong> Existing home sales make up most of the U.S. market, and good news arrived in November. Sales were up 0.8% from October to a seasonally adjusted annual rate of 3.82 million, which provides a much-needed boost to the weakest year for sales in over a decade. The upshot is that sales accelerated even as mortgage rates were climbing since the sales logged in November likely went under contract in September or October. Since then, mortgage rates have come down \u2013 as of last week, Freddie Mac reported that the average rate on the standard 30-year fixed mortgage was 6.67%, marking the seventh straight week of declines. This is a marked decline from the near 8% mortgage rates logged this fall and could result in more enthusiastic buyers heading into the new year.5<\/sup><\/p>\n\n\n\n Looking Back to Prepare for 2024<\/strong> \u2013 2023 has been an eventful year for the economy and markets. It\u2019s important to examine events that have influenced this current market to better prepare for what\u2019s to come in 2024.<\/p>\n\n\n\n
\u2022 The \u201cfinancial crisis\u201d that never was
\u2022 The U.S. economy defies expectations, and interest rates jump
\u2022 What to expect in 2024<\/p>\n\n\n\n![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2024\/01\/pic-1-1024x350.png\")