As the first quarter of 2024 concludes, the rise of the U.S. stock market has become a focal point, both in the headlines and financial discussions. The S&P 500 has seen an impressive 10.6% gain year to date, prompting investors to consider the implications of this strong start. With the excitement of rising stock values, it’s essential to remember the wisdom of Aesop’s fable, The Tortoise and the Hare, which teaches that steady, consistent efforts often surpass short-lived bursts of success in investing.
COMMENTARY HIGHLIGHTS:
- The Magnificent Seven, led by tech giants like Microsoft and Nvidia, reached all-time highs, driven by the growing buzz around artificial intelligence. The general market outlook improved, with an anticipated 11% increase in earnings, supported by positive macroeconomic indicators.
- Traditional fixed income assets faced challenges as bond prices declined with rising yields, signaling a sustained higher interest rate environment. Meanwhile, alternative investments offered stability in the face of market volatility, delivering steady returns during the quarter.
- Despite concerns about overvaluation in some market segments, we remain optimistic about the economic trajectory, focusing on cash flow growth and long-term stability in equities.
- Our investment strategy continues to stress the importance of diversification across non-correlated asset classes, like real estate lending and structured credit, to maintain resilience during market fluctuations.
If you are interested in how AlphaCore Wealth Advisory can help you reach your investment goals, please do not hesitate to contact us.