Market Commentary
Our portfolio managers give you their analysis of current economic trends
within their targeted area of investment
- Core Strategy
- Will Wurm
Q1 2024 : Breadth
Summary: Thus far, throughout the tightening cycle, economists and market strategists have consistently underestimated the strength of the economy and overestimated the economic impact of higher rates. The consensus forecast for recession has yet to arrive, and, in contrast, GDP growth remains solid, productivity has improved, and labor markets are robust. Defensively positioned investors still looking for weak economic growth, a recession or rate cuts are being drawn into equity markets in a capitulation for fear of missing out on future gains. Positively, and contrary to 2023, there is more than just tech driving gains as strong first-quarter returns were posted in the energy, industrials, and financial segments as well. This widening participation, known as breadth, is a strong indicator of a sustainable equity uptrend.