Santa Claus Pivot

We don’t know what AI is going to unleash in the future but in 2023 it saved the day.  After a disastrous prior year, when the Fed began their interest rate hikes to the sea, excitement on Wall Street over AI has lifted tech stocks and the major averages.  At the end of October though, the “magnificent seven” accounted for most or all of the gains for stocks.  Then in early December, the Fed finally abruptly pivoted, rates went from 5% to less than 4%, and the markets broadly took off across the board.  Instead of a Santa Claus rally, we can call this the Santa Claus Pivot.  Enjoy the holiday season!