From Morningstar.: 2024-04-02 06:12:00

In the first quarter of 2024, the Morningstar US Market Index rose by 10.24%, while the US Small-Mid Cap Index saw an 8.09% increase. International markets were more subdued, with the Developed Markets ex-US Index up 5.22% and the Emerging Markets Index up 2.07%. Optimism for large technology companies drove the US Technology Index up by 13.07%.

This week will feature speeches from Federal Reserve officials, including Jerome Powell, and will end with the jobs report on Friday, potentially creating volatility in asset prices. It’s important to remember that volatility may not always signal a momentum reversal.

Last week, investors were encouraged by inflation data, which supports expectations for favorable economic conditions for technology companies. Lower interest rates are expected and could lead to higher valuations for companies with high profit growth potential over the long term.

Investors are at risk of short-term thinking due to aligning stock price movements, economic data, and expectations, potentially leading to behavioral challenges. Seeking diversification in your portfolio can help reduce overall volatility and maintain a longer-term perspective rather than focusing solely on short-term price movements.



Read more at Morningstar.: Why Q1 Was a Triumph for Optimists