- Global stocks rallied in the first quarter, with U.S. stocks leading the way. Meanwhile, amid persistent inflation and generally healthy economic data, bond yields rose driving bond prices down.
- The S&P 500 Index reached 22 record highs and gained nearly 11% in the first quarter. This gain marked the strongest first-quarter performance since 2019. The index returned more than 3% in March, its fifth consecutive monthly gain.
- All S&P 500 Index sectors advanced in March, and every sector except real estate, which declined slightly, posted a quarterly gain. Communication services and energy were the quarter’s top performers.
- Non-U.S. developed markets stocks rallied but lagged U.S. stocks for the quarter. They slightly outperformed U.S. stocks in March. Emerging markets stocks advanced for the month and quarter but underperformed their developed markets peers.
- The rally broadened in March with Small Cap and Non-U.S Developed stocks both outperforming the S&P 500. Additionally, Value outperformed Growth by 3.2% in March.
- The Fed held rates steady and the majority of committee members continued to forecast three rate cuts in 2024. The European Central Bank and the Bank of England also remained on hold for the quarter.
- After climbing to 3.4% in December, the annual rate of U.S. headline inflation slowed to 3.2% by February. Inflation moderated to 2.6% in Europe and 3.4% in the U.K.
- In the U.S., all size and style indices advanced for the month and the quarter. Large-cap stocks sharply outpaced their smaller peers. Outside the U.S., returns were more modest for the quarter, but all broad size and style indices delivered gains.
- U.S. Treasury yields declined for the month but rose for the quarter. The broad bond market advanced in March but declined for the three-month period.
Stocks across markets, styles, and market capitalizations
Mutual funds and ETFs are less likely to lose money than individual stocks
Good investments lead to good investor behavior, which in-turn often leads to better investment results. What we mean by that is, when you make an investment that you truly believe in and plan to hold onto for the long haul, you’re much less likely to make impulsive decisions when the investment or the markets go haywire (as they always do eventually). It is often at these moments, when an investor abandons their investment strategy, selling an investment at the worst possible time. Think about how often you’ve seen someone jump on the latest hot stock trend, only for it to tank right after they bought in, leaving them regretting their losses. A good investment is one you’re committed to sticking with through the highs and lows.
The graphic below shows why ZRC generally prefers investing in mutual funds and ETFs over individual stocks. In our decades of experience, carefully chosen mutual funds and ETFs provide a more predictable investment experience, which leads to better investment results. That’s not to say individual stocks aren’t right for some – we have many clients with individual stock portfolios. Your advisor will help you determine which is best for you.
Sources: BlackRock, Inc and Morningstar as of 12/31/23. Stock mutual funds & ETFs are represented by the Morningstar U.S. Equity Category, oldest share class only. Individual U.S. stocks are represented by the Morningstar U.S. Stock Universe, all securities on the NYSE and NASDAQ. Analysis does not include obsolete mutual funds, ETFs or stocks are as defined by Morningstar. Past performance does not guarantee or indicate future results. Diversification does not guarantee a profit or protect against a loss in a declining market.
For more financial information see our 1st Quarter 2024 Market Review Slides.
April 15…………………….. Tax Day. Deadline for filing individual tax returns in the U.S.
April 22…………………….. Earth Day
Apr 30 & May 1 ……….. Federal Open Market Committee meeting
May 12……………………… Mother’s Day
May 27……………………… Memorial Day. The financial markets & ZRC’s offices are closed.
May 28……………………… The trade settlement period for securities shortens to one day.
June 11-12………………… Federal Open Market Committee meeting
June 16……………………… Father’s Day
June 19……………………… Juneteenth. The financial markets & ZRC’s offices are closed.
July 4…………………………. Independence Day. The financial markets & ZRC’s offices are closed.
July 15………………………. Second quarter estimated tax payments
July 30-31………………… Federal Open Market Committee meeting
