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The Federal Reserve's optimistic comments at the end of the year sparked an unexpected "everything rally" in the US. Although Europe's market performance closely mirrored that of the US in Q4, it did underperform by 100bps, with the UK continuing to lag behind its developed counterparts during the same period.
In the equity market research: 2023 Factor Performance Analysis, Confluence examines how equity market movements impacted factor performance across regions throughout the year, revealing:
- Europe: Surge in Q4 led Volatility and Forecast Growth to outperform, but Value, Yield, and Large Cap outperformed in 2023.
- UK: Value, Yield, and Quality outperformed in 2023, especially Low-Gearing in December and Q4.
- US Equities: Growth and Volatility outperformed both in Q4 and for 2023.
- Emerging Markets: Value, Yield, and Dividend Growth outperformed in 2023.
- Canada: Forecast growth outperformed in Q4, which led to Volatility, low gearing, and sales growth to outperform in 2023.
