Market Matters with CNBC's Bob Pisani — 1/5/2023

Latest Stock Market Moves

• The S&P was up 24% in 2023, which is considered a good year.
• The Santa Claus rally did not happen.
• The stock market started the year off on a weak note but bounced back slightly.
• There is a focus on the Federal Reserve and its actions, as they impact the market.
• Speculative tech stocks have seen a decline this week, while defensive sectors like healthcare have done well.

What to Watch in 2024

• The main focus is on how much the Federal Reserve will cut interest rates. The market is expecting multiple rate cuts.
• Other factors to consider include wage growth, housing, and inflation.
• The overall outlook is reasonably optimistic for a soft landing in the economy.

Gold Market

• Gold had a great year in 2023, reaching a historic high.
• Demand from central banks and retail buyers in countries like India and China drove up prices.
• Central banks are diversifying their reserves by purchasing gold.

Individual Stocks for Long-Term Investment

• The speaker does not personally recommend owning individual stocks.
• He advises a strategy of diversification using index funds, such as S&P 500, mid-cap, small-cap, and international funds.

Inflation and High Prices

• Inflation is cooling down overall, but some prices remain high.
• People tend to focus on specific items that seem expensive, even if the overall trend is downward.
• Real estate prices and rental prices are expected to moderate in 2024.

Earnings and Market Rally

• The S&P hit a historic high at the end of December.
• The focus is on whether earnings can keep up with the market rally.
• Revenue growth and demand shifts are important factors to watch.

Bitcoin ETF

• There are 13 applications pending for a Bitcoin ETF, which would make it easier for investors to trade Bitcoin.
• A Bitcoin ETF would act as a custodian for Bitcoin, similar to a gold ETF.
• The speaker expresses some skepticism about Bitcoin as an asset class, but acknowledges the demand and the need for a safer way to own it.