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Bonds were Up in 2023

Like stocks, all categories of US and international bonds were up in 2023 (chart).

Bonds are heavily influenced by inflation and Federal Reserve interest rate actions. Inflation is declining, and the Fed says it may lower rates in 2024. Both are very good news for the bond market.

Mortgage rates are declining as well, which will be good news for the frozen housing market. New home sales can be a driver of general economic activity, and may help address the somewhat depressed consumer sentiment number; homes are simply too expensive for many first-time buyers, and those looking to move but are now locked into a low mortgage rate.

For the first time in memory, CDs are actually paying decent interest rates!