The year-end rally that produced a nearly 14 percent increase in the DOW has continued. And the DOW is still the laggard. Its 3.8 percent improvement in the first two months of the year was exceeded by the tech heavy NAS (6.6%, 43% in 2023) and the broader S&P (6.7%, 24% in 2023). All three indexes hit new highs this year.
Only a handful of stocks have been the primary movers in this market. The so-called Magnificent Seven: Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Meta Platform and Tesla.
Although there continues to be uncertainty related to interest rates (now about 5%), inflation (above 3%) and a possible economic slowdown in the remainder of the year, it still appears to be a good investment market. Rates are likely to come down slower than expected in the next 10 months and inflation appears subdued, if not reversing. Also, with near full employment, wage gains, and steady consumer spending, fear of a recession has receded.
RELATED
Year End Rally Continues? (January 3, 2024)
No comments:
Post a Comment