Posts Tagged market commentary

2024 has been a very good year for investors so far, with stock markets in the UK, US and Europe all reaching record highs. Signs of weakness have emerged in recent weeks, as companies report their latest earnings: valuations in the US are high and some profit taking has occurred. The UK stock market appears cheaper, with an improving economy to boot. Many investors believe inflation is finally under control.

Recent data has hinted at a divergence between the US and UK/EU economies, with signs of an economic slowdown in the States coinciding with Britain and Europe rebounding from a period of stagnant GDP growth. Having been neglected for several years post-Brexit, there is hope that UK stocks may finally prosper given a more favourable macroeconomic environment.

STOCKS BEGIN TO MOTOR -
In June 2023 we asked whether a new bull market had begun. Nine months later, we have our answer. The MSCI World index moved to new all-time highs in February. The US and Japanese stock markets have led the way, while others are yet to catch up - including the UK’s.

A Steady Start to 2024 -
The year has begun on a tentative footing following the excesses of November and December, when asset prices galloped higher. Investors have paused to reflect on the ‘wall of worry’ that is said to accompany most bull markets. 

Investors enter 2024 with optimism -
Global stocks closed 2023 with their fourth largest annual return of the last twenty years. But those gains mostly came from a narrow group. The seven largest companies in the US - Apple, Microsoft, Google, Amazon, Nvidia, Facebook & Tesla – returned a colossal 111% on average.