Maple Capital
Monthly Commentary as of 12/31/2023
December in Review
Financial market performance in December was astonishing (see table). The total returns for this single month would qualify as quite solid results for a full year, which may be important to remember as 2024 unfolds.
Continuing the trend from November, Treasury bond yields fell dramatically across the entire maturity spectrum, with the long end again leading the way. The yield on the two-year Treasury declined by 43 basis points, while the thirty-year fell by 46. Lower yield translates to price gains which help diminish unrealized losses on portfolio holdings.
Within the fixed income market, corporate bond yield spreads narrowed, which also leads to price gains. Mortgage-backed securities had another solid month. Lastly, municipal bonds turned in solid results albeit lagging Treasuries.
Equities enjoyed exemplary results, with broad-based gains across valuation, geographic, and size classifications. Leading the charge was the Russell 2000 Index of small-company stocks followed by the Nasdaq Index. The S&P 500 Index ended the year with nine consecutive positive weeks, its longest streak since early 2004.
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