2023’s Best-Performing U.S. Stock Funds

Plus: Undervalued utilities stocks, where to invest in 2024, and the top-performing large-growth funds. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=50736&elqTrackId=433a9d6008b0484f9f03622aea2c3b21&elq=f6ce8fbac64249a5a55c9f94bca77dba&elqaid=50736&elqat=1&elqCampaignId=25431) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week’s newsletter: - [2023’s Best-Performing U.S. Stock Funds]( - [4 Undervalued Utilities Stocks With Strong Dividends]( - [9 Top-Performing Large-Growth Funds]( Stocks Look Cheap or Expensive]( - [Our Best Investment Ideas for 2024]( - [3 Lessons from Stocks’ Round Trip]( With a week left in 2023, stocks are up 24% for the year, and they’re within shouting distance of a new all-time high, thanks to expectations of rate cuts in 2024 and the related bond market rally. As the market has round-tripped the 2022 bear market, we have a few pieces taking stock of the bounce. In the first, the ever-skeptical John Rekenthaler asks an intriguing question: In terms of investor purchasing power, has the stock market really bounced all the way back? [Check out his answer](. Sarah Hansen also checks under the hood of the rally, noting that while the market started 2023 near its cheapest levels in a decade, a lot of those bargain-priced stocks aren’t so cheap anymore. But that doesn’t mean some sectors don’t offer opportunities. [Here’s her look]( at where investors are more likely to find undervalued stocks, as well as which areas are the most expensive. We’ve also got a broader look at where to invest in 2024 from Morningstar’s chief U.S. market strategist Dave Sekera and Morningstar Investment Management’s Tyler Dann. [Dave and Tyler offer ideas]( about the best opportunities for investors across bonds and stocks as the new year gets underway. Regular readers will know that much electronic ink has been spilled this year on Nvidia and the rest of the “Magnificent Seven” stocks. This trend – along with the broader rally in other growth stocks – has had big impact on the top funds in 2023. [We look at]( which U.S. stock funds did best this year, along with the top performers over the past three and five years. We’ve also got a new fund screen that drills into the top-performing market, large-growth funds. [See for yourself]( which of these funds have led the pack over the last few years. Lastly, [we’ve got a close look at utilities stocks]( with a focus on Morningstar analysts’ top picks among undervalued names with strong dividends. That’s it for this week! We’ll be back next weekend with more year-in-review pieces and our outlooks for 2024. As always, check out our [Markets page]( for our latest coverage and live stock market updates, along with our [weekly calendar]( of key upcoming data and events. Did a friend forward this email? [Sign up here](. ADVERTISEMENT [media]( [media] Markets and the Economy [Where Stocks Look Cheap or Expensive]( [Where Stocks Look Cheap or Expensive]( While the overall market is near fair value, there are pockets of opportunity. Sarah Hansen, Lauren Solberg [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Update dek Tom Lauricella [3 Lessons from Stocks’ Round Trip]( [3 Lessons from Stocks’ Round Trip]( Equities are back where they started this time last year — sort of. John Rekenthaler [Our Best Investment Ideas for 2024]( [Our Best Investment Ideas for 2024]( We see opportunities in both stocks and bonds in the year ahead. Tyler Dann, David Sekera [6 Undervalued Stocks to Buy After the Market Rally]( [6 Undervalued Stocks to Buy After the Market Rally]( Plus, our take on interest rates following the Fed meeting and what moved markets in 2023. David Sekera, Susan Dziubinski [2023’s Best-Performing U.S. Stock Funds]( [2023’s Best-Performing U.S. Stock Funds]( Fueled by the ‘Magnificent Seven’ stocks, growth funds take the lead. Katherine Lynch [After Earnings, Is Adobe Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Adobe Stock a Buy, a Sell, or Fairly Valued?]( With good results and strong revenue growth, here’s what we think of Adobe stock. Dan Romanoff [4 Undervalued Utilities Stocks With Strong Dividends]( [4 Undervalued Utilities Stocks With Strong Dividends]( Even with higher interest rates, these top picks hold potential for both income and growth. Diana Anghel [6 ETF Investing Predictions for 2024]( [6 ETF Investing Predictions for 2024]( More bond ETFs, fewer passive ETFs, and what else to expect in the new year. Zachary Evens Chart of the Week [When Will the Fed Start Cutting Interest Rates?]( [When Will the Fed Start Cutting Interest Rates?]( Our latest economic forecast for interest rates, inflation, and GDP growth. Preston Caldwell [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [The 4 Biggest Market Stories of 2023 — and What’s Next in 2024]( This year was all about the Fed and what turned out to be an “everything rally.” Sarah Hansen [Best Investing Podcasts for Beginners]( Keep up with market news, make smart money moves, and expand your financial literacy with these investing podcasts. Carole Hodorowicz [Your 2024 Tax Fact Sheet and Calendar]( Bookmark this guide to stay abreast of the tax-related dates and data that should be on your radar this year. Christine Benz [Can the 60/40 Portfolio Win in 2024?]( What higher interest rates and market valuations may mean for this simple strategy in the year ahead. Jason Kephart, Susan Dziubinski [5 Portfolio Lessons From 2023]( Consider these key investing takeaways as you adjust your investment portfolio for 2024. Christine Benz, Susan Dziubinski Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. Subscribe to Morningstar Investor and get unlimited access to our powerful ratings and performance data, unbiased analysis on thousands of stocks, funds, and ETFs, and portfolio management tools that give you a deep understanding of your investments so you know when to make changes to keep your strategy strong. [Start your free trial today](. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602