2024 Q1 Commentary

Market Review

It was a great quarter to be an investor as many major asset classes continued to move higher during the first quarter of 2024. Large cap stocks as measured by the S&P 500 Index reached an all-time high on March 28th, while small cap stocks as measured by the Russell 2000 Index moved to within 10% of their peak levels. International and emerging markets equities also moved higher.

Investors’ enthusiasm was not limited to equities, as many commodities moved higher, and Bitcoin also reached an all-time high. In such an ebullient environment, it is not surprising that bonds traded modestly lower and yields moved higher. Investor optimism is grounded on the underlying U.S. economy, which appears to be headed for a softer landing, and moderating inflation. The labor market has remained strong and higher interest rates have not over cooled economic output. Inflation is still running above the Federal Reserve’s 2% target and Fed officials have cautioned that interest rates may stay higher for longer. Despite this, investors appear willing to take an optimistic outlook.