The Takeaway
- Receding inflation along with a continued enthusiasm for Artificial Intelligence during the quarter made for a more favorable market environment, with all style indexes closing in positive territory.
- Reduction in crude oil prices and an expectation of interest rate cuts caused technology stocks to outperform whilst energy stocks underperformed, propelling growth to do better in all regions but the emerging markets.
- In Emerging Markets strong performance from Brazil, India and Mexico was curtailed by continued poor performance in China and Turkey, who both struggle with macroeconomic headwinds.
During the fourth quarter of 2023, all indexes finished on a positive note, with small caps performing particularly well in the US whilst value lagged behind their growth counterparts across the board with expectations of rate cuts nearing and a slowdown in inflation likely being the catalysts for the uptick in performance. The dynamics closely mirrored those in the US overall with value stocks once again underperforming when compared to the growth equivalent in all but the emerging markets.
©2024 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the proprietary information of Morningstar, (2) may not be copied or redistributed, (3) do not constitute investment advice offered by Morningstar, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (5) are not warranted to be correct, complete or accurate. Morningstar has not given its consent to be deemed an "expert" under the federal Securities Act of 1933. Except as otherwise required by law, Morningstar is not responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. References to specific securities or other investment options should not be considered an offer (as defined by the Securities and Exchange Act) to purchase or sell that specific investment. Past performance does not guarantee future results. Before making any investment decision, consider if the investment is suitable for you by referencing your own financial position, investment objectives, and risk profile. Always consult with your financial advisor before investing.
Indexes are unmanaged and not available for direct investment.
Morningstar indexes are created and maintained by Morningstar, Inc. Morningstar® is a registered trademark of Morningstar, Inc.