First Quarter Wrap Up
- Many investors had high hopes going into 2024. The market’s robust first-quarter rally still managed to surprise them. Everything from stocks to bitcoin to gold marched to new records. With one trading session to go, the S&P 500 is up 10% in the first quarter, set for its best start to the year since 2019. Any weakness in the stock market hasn’t lasted more than a few sessions, with investors buying the dip and sending the index to 21 all-time closing highs. And it isn’t just a small group of megacap tech stocks participating in the rally. All but one of the 11 sectors of the S&P 500 have risen. The Russell 2000 index of small-cap stocks is up 4.3%. A Russell index of value stocks outperformed its growth counterpart in the past month. – WSJ
- As widely anticipated, the Federal Open Market Committee (FOMC) voted to leave the Federal funds rate unchanged at a target range of 5.25%-5.50% at its March meeting. The statement language was largely unchanged, with slight adjustments acknowledging the recent labor market strength and maintained its commentary that inflation has eased but remains elevated. Investors should not be too surprised with this outcome. So far this year, the data continue to reflect a healthy labor market, good overall economic activity, and inflation still on a downtrend, though it could take a bit longer to reach target. Importantly, there is still a clear bias to cut rates from the committee. –JPM
- Big takeovers more than doubled in the first quarter of this year, signaling a nascent recovery in mergers and acquisitions after a long drought. According to data from the London Stock Exchange Group, deals worth at least $10bn more than doubled in the quarter compared with the same period last, driven by large US takeovers in the energy, technology and financial sector.– FT
Information in this commentary is gleaned from third party sources, and while believed to be reliable, is not independently verified. This content is not intended to be tax, legal, investment or fiduciary advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. Past performance does not guarantee future results.