The Roundup
Quarter in Review – Q1 2024
From the end of 2023 and into the first months of 2024, a “risk on” mentality persisted where certain themes were playing through:
1) The market embraced a “soft landing” as opposed to a full-blown, nasty recession.
2) The market embraced that the next Fed move would more than likely be a cut as opposed to a hike in interest rates. There was optimism for multiple cuts (up to 6), which has now been tempered back (to around 2)
3) The thought was that the rally would broaden out to other opportunities as opposed to predominantly just a MAG 7 (Magnificent 7 – Apple, Amazon, Alphabet, Meta, Microsoft, Tesla, and Nvidia) rally.
4) The thought that locking in some attractive bond yields before the Fed inevitably ends up cutting rates would be a good, lower-risk opportunity.
