3Q24 Market Insights | Beyond the Numbers
- Major market indexes had a strong showing in the third quarter as “economic activity has continued to expand at a solid pace,” to use the words from the September 18th federal reserve meeting. At that meeting, the fed announced a 0.50% cut in the federal funds rate while acknowledging that inflation is trending down towards its long-term target.
- Stock market leadership seems to be broadening out beyond large, US technology stocks (Microsoft, Apple, NVIDIA, Alphabet (Google), and Amazon). US large cap companies outside of these largest names, US small/mid cap companies, and international companies all outperformed the S&P 500 Index for the most recent quarter.
- Bonds rallied along with stocks with the broad bond benchmark (Bloomberg US Aggregate Bond Index) gaining 5.2% for the quarter and the Bloomberg Municipal Bond Index gaining 2.7% for the quarter. High yield bonds also saw a 5.3% increase and are now up 8% for the year as corporate balance sheets remain relatively healthy.
- Research Highlight: Market Extremes Might Be Starting to Ease. Last quarter, we mentioned how high valuations in a narrow group of large, US technology stocks could present the opportunity for other parts of the market to play catch-up. That played out in this most recent quarter. Markets are healthier when there is broader participation, so it would be encouraging to see this trend continue.
2024 Market Performance (Through 9/30/2024)
Journey Beyond Wealth (“JBW”) is an Investment Advisor registered with the SEC. All views, expressions, and opinions included in this communication are subject to change. Registration of an investment advisor does not imply a certain level of skill or training. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Please contact us if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.
