Q1 2024 Investment Review & Outlook.

Introduction

Q1 2024 closed out with the best first quarter for global markets in 5 years. Period was dominated by the Artificial Intelligence (AI) growth theme and a key driver of the continuation of the bull run in equities.

Whereas the rally in Q4 was due in large part to a dramatic shift lower in the yield curve on expectations of a dovish Fed pivot, the continuation of equity gains in Q1 came despite the hawkish repricing of monetary policy. Markets began the year expecting roughly seven rate cuts for 2024. Throughout the quarter, that pendulum swung back to three cuts amidst a backdrop of improving economic growth and slowing disinflation.

The AI boom has fuelled the market’s gains, with chip designer Nvidia adding more than $1tn in market value during the first three months of the year. That is equivalent to about one-fifth of the total gain for global stock markets in Q1.

The MSCI index of worldwide stocks has gained 7.7 per cent this year, the most since 2019. With stocks outperforming bonds by the biggest margin in any quarter since 2020, even as traders scale back their expectations for rapid interest rate cuts. The charge has been helped by the S&P 500, which has closed at a record high on 22 separate occasions during the quarter.

To read the full report download here or view below:

SFS Q1 2024 Investment Review & Outlook V2

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