January 2024 SMID Review

After a ferocious market rally in November and December, stocks were mixed in January. Some consolidation was to be expected, after a two-month rally that saw the stock indexes rise anywhere from roughly 15% (large caps), to 20% (mid caps), to 23% (small caps). Developments during the month were generally positive, as economic and inflation data continued to be favorable. Hanging over the market were continued geopolitical concerns over events in the Middle East, most notably the attacks on commercial shipping by the Iran-allied Houthis in Yemen and a potential widening of the war.