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Betting against the US economy was a mistake, while hopes for China's revival proved overly optimistic. Chief strategist Luca Paolini runs the rule over a tumultuous year.
By Luca PAOLINI, Chief Strategist Pictet Asset Management
1. Growth is more important than rates for equities
The idea that the US Federal Reserve's monetary policy is the single most important influence on equity markets has been conventional wisdom since the financial crisis of 2008. But while stocks remain sensitive to changes in market-derived interest rate expectations, the equity market rally of 2023 can't be attributed to a dovish Fed. An important factor was stronger-than-expected US economic growth.
Recall that...
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