Hi all,
As the page turns into 2024, we here at Second Level Capital are mostly filled with gratitude. Gratitude for those clients who came to us in late 2021 and early 2022, and stuck with us through the roller coaster of the last few years. Pride for our long-term clients seeing their portfolios near all-time highs. Excitement for our business that continues to grow, and readiness to help more people in the coming year.
As for the market commentary, there isn’t much to glean just yet about how 2024 will shape up, but the transition we made for most clients in the fourth quarter of last year proved to be very profitable as the Russell 2000 went from a 52-week low on October 27th to a 52-week high on December 20th (one of the fastest moves on record). Whether or not this value/growth rotation can be sustained is another question, but in terms of sectors, we continue to see opportunity in energy and biotech (to name a couple). Outside of those smaller areas, our conviction beyond a month or two remains pretty low. In similar times like these in the past, it has usually meant the market needs a bit of a breather to present more attractive buying spots.
As a heads up, we are likely moving office space this year (not quite The Jefferson’s), but more to come on that during future posts.
We hope that everyone had a safe and happy holiday season, and couldn’t be more ready to argue about markets with most of you in 2024 🙂
– Adam