Team Hewins’ Post

Market Movers and Investment Insights The stock market has had an impressive start to 2024, driven by positive economic data and the anticipation of Federal Reserve rate cuts. Historically, such strong first-half performances have led to above-average annual returns. Mega-cap technology stocks led the way due to AI excitement, while defensive sectors like utilities and Gold also saw robust gains. In contrast, volatility was low, and small-cap equities underperformed. Here is a detailed look at key players in the first half and what might lie ahead, including insights from European markets and investment opportunities. Read the full market pulse update here:

Market Movers and Investment Insights The stock market has had an impressive start to 2024, driven by positive economic data and the anticipation of Federal Reserve rate cuts. Historically, such strong first-half performances have led to above-average annual returns. Mega-cap technology stocks led the way due to AI excitement, while defensive sectors like utilities and Gold also saw robust gains. In contrast, volatility was low, and small-cap equities underperformed. Here is a detailed look at key players in the first half and what might lie ahead, including insights from European markets and investment opportunities. Read the full market pulse update here:

With a favourable economic background of inflation cooling (albeit slowly) and the prospect of lower interest rates, global stock markets recorded their best first quarter performance in five years.  Market background across the globe, investor sentiment, labour market resilience, recession expectations and inflationary moves. It's all in Graham O'Neill's latest market update: https://lnkd.in/ebFExpYE #inflation #recession #interestrates #globaleconomy #investorsentiment #labourmarket #supplychain #riskassets

With the tech stock boom of 2023 beginning to slow down, albeit with notable exceptions such as Nvidia, investors are now trying to find a home for the growth that amassed in their portfolio. Given the improving sentiment in #Europe and opportunities in #emergingmarkets equities, firms like Bank of America in the U.S. have seen outflows from tech and into these region's equity markets. Not only is this good portfolio management from the perspective of rebalancing and mitigating concentration risk (having too much of one thing can be a detriment to your portfolio!), but it is also taking advantage of improved sentiment in both regions. Take for example European equities, the EURO STOXX 50 index as of this morning has risen 10.54% YTD and 26.68% in the last year. This has been driven by improved consumer sentiment and inflation coming down in the region faster than the ECB and investors expected. To learn how this impacts your portfolio, feel free to message me, email me at [email protected] or call me at 416-699-0183. #investmentplanning #wealthmanagement #Europe #equities #tech

The U.S. stock market's recent outperformance has some investors optimistic, but economists warn that the AI-driven rally may not last. The strength of the U.S. economy relative to the rest of the world post-pandemic has led some bullish investors to believe that the U.S. stock market will continue to outperform global benchmarks. However, a growing reliance on the artificial intelligence boom presents a potential risk. Economists from Capital Economics suggest that this AI "bubble" could eventually burst, bringing U.S. stock performance closer to that of the global market. 📈 Bullish Outlook: Investors are optimistic about the U.S. stock market's continued outperformance. 🤖 AI Dependency: The current rally is heavily influenced by enthusiasm around artificial intelligence. 📉 Bubble Risk: Economists warn that the AI bubble might burst within the next 18 months, impacting stock performance. 🌍 Global Comparison: U.S. equities have outperformed global counterparts since 2008, driven by sectors like IT and AI. 💼 Economic Resilience: Despite potential stock market adjustments, the fundamental strength of the U.S. economy is expected to persist. #USStockMarket #AIBubble #EconomicOutlook #InvestmentRisks #CapitalEconomics #StockMarketTrends #USvsGlobalStocks #ArtificialIntelligence #MarketPerformance #EconomicResilience 

How did major stock markets perform last week? It was a mixed week for markets, with three of the five major indexes seeing positive returns. Fresh enthusiasm from investors around AI technology had a positive affect on U.S. tech stocks over the week. In addition, positive economic news coming out of the U.S. has helped the S&P500 yet again. In contrast, China’s economic woes continue, a reduction in their credit rating being the latest challenge. https://lnkd.in/ezHS9UeH #economy #investing #wealthmanagement

STRATEGIQ Capital | Weekly Review: Markets Suffer a New Year's 'Hangover' In 2023, equity markets rebounded sharply, driven by technology stocks. The chart below shows a widening gap in individual stock returns since 2020 (green bar), reflecting heightened volatility due to macro uncertainty, geopolitical factors, and structural shifts. The influence of artificial intelligence on U.S. stocks highlights the significance of current mega forces, shaping the market landscape beyond future trends. Find out more: https://lnkd.in/d2g-NkSQ To make sure you don't miss out on the latest updates, we invite you to subscribe to our FREE weekly newsletter! 📧 https://lnkd.in/dAvdv9UW #markets #2024

Quick update on the markets today; In recent financial news, both Wall Street and the FTSE 100 (^FTSE) along with European stocks, experienced a decrease, despite predictions. This was largely due to a sell-off motivated by unsatisfactory results in the tech sector, which led many traders to reassess whether the sustained growth in the sector was sustainable. U.S. stocks experienced their largest decrease in over a year, triggering a noticeable shift towards less volatile assets. These included short-term bonds, the Japanese yen, and the Swiss Franc. Among the sectors hardest hit was artificial intelligence (AI), suffering losses across major players like Nvidia, Alphabet (Google’s parent company), Microsoft, Apple, and Tesla. This happened amidst reports that the U.S. economy had shown higher than expected growth in the second quarter. An increase of 2.8% marks a surge in consumer spending on both goods and services. A stark improvement on the 2% predicted by analysts. Despite the confirmed growth, it’s noticeable that progress is slower when compared to the 4.2% growth from the second half of last year. One can only speculate on future market behaviour in light of these developments, but it's clear that the world of finance keeps us constantly on our toes. Website: www.roxburghonline.co.uk Contact: https://lnkd.in/gmPSi5fw #FinancialNews #StockMarket #WallStreet #FTSE100

The economy is growing, lower interest rates are on the horizon, artificial intelligence technology is set to create a utopia of corporate efficiency, and nothing can stop the soaring stock market. At least that’s how most of Wall Street’s soothsayers now see things. After being burned last year by doom-and-gloom calls that failed to materialize, equities strategists can’t turn bullish fast enough, making bears a rarity as the S&P 500 Index keeps setting new records. And to the few remaining skeptics, this kind of halcyon-laced groupthink is a key reason to be cautious about the stock market in this euphoric moment. Bloomberg News

📽 In today's video, Paul Carroll CFP® notes that not only did tech stocks take a drubbing yesterday, but Goldman’s top analyst warns of an AI Bubble Burst in the coming months. What other factors may impact the value of markets going forward? Check out the video to understand these market dynamics and how they might impact your investment strategy: https://lnkd.in/gqYkxNXu #AvionWealth #WealthManagement #TechBubble #Trumponomics