Quarterly Market Update 3.31.2024

Hi, it’s Scott Campbell, your 401(k) advisor with my quarterly market update for the first quarter of 2024.

U.S. stock and bond markets continued to perform very well in the first quarter of 2024.

All of the conditions that propelled markets in 2023 continued in the first quarter.

Inflation is holding steady, although prices for everything from groceries to gas; from utilities to insurance and most things in between remain high. Wages have not kept up with the inflation over the past two years. High prices are hurting consumers.

The economy is doing well. There have been a few blips of inflation in the data recently. This is causing the Federal Reserve to hold interest rate steady. Market pundits have been calling for multiple rate cuts this year, but now one or two are more likely.

Regarding the U.S. stock market, the big tech and chip companies that drove the phenomenal performance in 2023 took a bit of a breather in the first quarter. They continued to produce positive returns, but small cap and mid cap stocks drove performance for the quarter producing outstanding returns. Which proves an investment rule: a diversified asset allocation is the best investment strategy.

Please call me if you have any questions or need any help.