2023 has been a welcome reversal from last year’s bear market, with the S&P 500 and Nasdaq gaining 16% and 32%, respectively. Bonds and international equity markets are also up on the year. Asset returns this high and broad are typically associated with early-stage cyclical recoveries, when economic growth is above trend and monetary policy is loose. Today, we have exactly the opposite economic conditions, with slowing growth and restrictive policy.
How to explain the resilience of the market?…
