The Night Before Christmas: Matco Edition

3 minute read • December 21, 2023

‘Twas the night before Christmas when all through the market
Not a stock price was stirring, trending beyond analyst target.
As stockings were hung by the chimney with care,
The Fed’s rate cut pivot, a Santa Clause rally did flare.

Traders around the world lay snug in their beds,
While visions of 2024 returns, danced in their heads.
Dreams littered with quality stocks and investment grade bonds,
While nightmares of a recession, and hard landing less fond.

All around the world, central bankers no longer chatter.
Their plans have been laid; rate cuts the year latter.
Fed Chair Powell at the helm, inflation all but defeated.
Now to avoid a recession, the task in 2024 to be greeted.

As the moon shines on the new fallen snow,
The tech sector this year, with some newfound glow.
Santa’s sleigh now prepped for flight through the night,
Nvidia’s strong earnings, the AI hype it did ignite.

When out on the lawn, there arose such a clatter.
The bond market’s awakened, yields now much fatter.
Away to the window, I flew like a flash.
Fixed income investors, finally receiving their fair cash.

And then in a twinkling, it was heard on the roof.
Silicon Valley Bank, caught acting aloof.
Santa dropping through the chimney, landing a bit dizzy.
First Republic the next victim, bank investors left in a tizzy.

As he pranced through living rooms, unloading his bag.
Perhaps a Louis Vuitton, whose market cap did not sag.
The first European company, reaching $500 billion in value.
Those on the nice list saying, “Leave one under my tree shall you”.

Dressed in all fur, from his head to his foot.
Thanking the magnificent seven, for his portfolio’s output.
Filling the last of the stockings, stuffed with toy collections.
Worried their valuations, leave little downside protections.

His eyes–how they twinkled! His dimples, how merry!
Government debt out of control, getting a bit scary.
His jolly mouth and cheeks, drawn up like a bow.
Fitch rating agency skeptical, they can’t pay back all this dough.

As he lay the final presents, tidy beneath the tree.
Positive earnings growth ahead, a unanimous investor plea.
A hard or soft landing, the debate for next year.
Tight financial conditions and layoffs, making it unclear.

Reaching for the cookies, a slight sip of milk
Gold at all time highs, worth far more than silk.
A haven for investors, hiding from volatility.
Those piling in, declare economic fragility.

Hopping back on his sleigh, portfolio rebalancing likely.
Wiggling into his saddle, reindeer reigns pulled tightly.
“Now dasher, now dancer, vixen and prancer”
Even the reindeer know, buy low, sell high the right answer.

Despite what lies ahead, Matco’s mission remains the same.
Disciplined portfolios, our first and last name.
Staying true to our process, so that futures are bright.
Merry Christmas to all, and to all a good night.

Trevor Galon

Trevor Galon CFA

Chief Investment Officer

Read bio
Confident woman holding mobile phone

Get Matco
Market Insights

delivered to your inbox once a month