2023 Rewind: A Favorable Year for Investors

Time flies! We are already at the end of the year. We sincerely hope that this year has been a fruitful year for you. Let us rewind 2023 and see how various markets have performed this year.



2023 Inflation US & SG

Inflation has moderated this year.

US CPI started the year at 6.4% and is now at 3.1% in Nov 2023. US Core CPI declined fromĀ  5.6% to 4.0%. Singapore’s CPI has also moderated from 6.6% at the start of the year to 4.7% as of Oct 2023. Core CPI declined from 5.5% to 3.3%.

Overall, inflation has continued to cool down this year and is approaching the Fed’s long-term inflation target of 2%.


Interest Rates

2023 US Interest Rates

Interest rates may have peaked.

The Fed hiked interest rates four times in 2023. The current target rate is 5.25-5.50%.

However, the Fed has paused its rate hike in the past three FOMC meetings and signaled that they may have reached the end of the rate hike campaign. They projected three rate cuts in 2024. The market also expects that we may have reached the end of this rate hike cycle and start reversing next year.


Equity Markets

2023 Equity Markets

A good year for US equities

Against all odds, S&P500 rallied more than 20% this year despite uncertainties surrounding the economy. The European stock market also did well, rallying more than 10% this year.

China and Hong Kong equities did not perform well this year, declining more than 10%.

Singapore’s stock market was roughly flat, declining less than 5%.



2023 Bitcoin prices

Bitcoin sky-rocketing

Bitcoin has performed very well in 2023, starting the year at around $16,000 and reaching $43,000 toward the end of the year.

The massive growth was due to the excitement of the Bitcoin Spot ETF, which is expected to be approved in the United States as early as next year. Additionally, Bitcoin halving is also coming soon next year.


Singapore REITs

2023 Singapore REITs price index
Source: SGX

Singapore REITs were roughly flat this year.

Despite the ups and downs, the iEdge S-REIT Leaders Index ended the year roughly flat after rebounding strongly towards the end of this year due to the rate reversal expectation.

However, the current level is still way below the level at the start of 2022, around 17% lower.

If you are interested in Singapore REITs, you may look at the list of Singapore REITs. You can also get diversified exposure to the Singapore REIT sector by investing in Singapore REIT ETF.


Singapore Residential Property Market

2023 Singapore Residential Property Price Index
Source: SRX

Resilient Singapore residential property market

Both the HDB and private property markets stayed resilient in 2023. The property price index continued to rise, though the increase has moderated this year.

This is despite a significant cooling measure introduced in April 2023, which raised the ABSD to 60% for foreigners. The ABSD for the second residential property was also raised across the board. In addition, tens of thousands of new units obtained TOP in 2023, boosting the available housing supply, which should help alleviate the high demand seen since the COVID era.



Looking back, 2023 was a favorable year for investors, with inflation cooling down, cash generating decent yield, and various asset classes continuing to appreciate. The message of “staying invested” was heard loud and clear this year. Those who attempted to time the market may have missed out on this year’s strong rebound, while those who remained disciplined and invested throughout enjoyed the year’s strong rally.

What is in store for us in 2024?

Happy New Year 2024!

Thank you for your continued support and for being part of our journey together.

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Disclaimer: The information provided here is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice or recommendation of any sort.

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