Economic Update and Outlook for Quarter 1 – 2024

Our research partners, Innova Asset Management, have released their Quarter 1 – 2024 Market Commentary report.

As we reflect on the first quarter of 2024, the stock market has been really interesting, driven by new technology and changes in the economy. Two main things stood out during this time: the significant changes brought by new AI technology in tech companies, and how unsure everyone was about interest rates going up or down. Together, these factors greatly impacted how the stock market moved, how investors felt, and the overall view of the economy.

Here’s a quick look into the dynamics that shaped the financial terrain:

– The stock market in 2023 was mainly driven by breakthroughs in AI technology and changing views on interest rates.

– The largest US tech companies, often called the “Magnificent 7,” were a big reason the market did well.

– NVIDIA stood out due to its focus on AI and big projects by companies like Microsoft.

– The US economy stayed strong, thanks to people spending a lot of money, making it less likely for the economy to shrink.

– Global stock markets, especially those focused on technology like the Nasdaq, did really well in 2023.

– After reaching high levels in 2022, inflation (or the cost of living) in rich countries started to decrease, changing what people thought the Federal Reserve would do about interest rates.

– There’s a growing difference in value between the most prominent US companies and other stocks, with indexes like the S&P 500 and Nasdaq showing higher than usual prices.

Watch the full video breakdown below, or read the attached commentary here on the current key issues, a comprehensive review of Quarter 1, and how we are positioning our Innova Active portfolios for clients.