HERE ARE THE LATEST trends in the world of investing:
The S&P 500 climbed 10.2% in 2024’s first quarter, adding to 2023’s 24.2% gain. Stocks are now up 46.9% since the October 2022 market low. These figures don’t include dividends.
The broad U.S. stock market, developed foreign markets and emerging markets all posted gains in 2024’s first three months. But mirroring much of the past 15 years, growth stocks—especially large-company growth stocks—fared better than value stocks, and U.S. stocks easily outpaced foreign shares.
During 2024’s first three months, bonds struggled, with the yield on the benchmark 10-year Treasury note rising to 4.21% from 3.88% at year-end 2023.
One-year Treasury bills were yielding 5.03% as of March 28, up from 4.78% at year-end 2023. Those favoring cash investments will likely see their handsome yields shrink in 2024, as the Federal Reserve looks to cut short-term interest rates.
Real assets had mixed performance in 2024’s first quarter. Oil prices rose to $83 a barrel from $71 at year-end 2023. Gold also rose, climbing to $2,255 an ounce from $2,072 three months earlier. But faced with rising interest rates, real estate investment trusts treaded water during the first quarter.
In March, the Federal Reserve projected that the U.S. economy would grow 2.1% in 2024. What about unemployment? The Fed expects it to finish 2024 at 4%, while core inflation runs at 2.6%.
As of 2022, 58% of U.S. families were invested in the stock market, up from 48.9% nine years earlier, according to the Federal Reserve’s Survey of Consumer Finances. The survey is conducted every three years.
Want to get a handle on stock and bond market valuations? Check out the chapter on financial markets.
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