As expected, markets have been more volatile in the second half of 2024, but major stock market indices remain near their all-time highs despite the increased uncertainty. Markets are hanging in there as investors are balancing weakening economic data with the prospects of lower interest rates just around the corner. Most portfolio managers I read and speak with still believe a soft landing for the US economy is the most probable scenario.
Bonds have rallied since June with corporate bonds (pink) up over 6% and US treasuries (dark blue) up over 5%. International stocks (red) are up about 3.5%, while the S&P 500 (green) is up 2.0% and the tech-heavy Nasdaq (light blue) is down around -2.0%.
https://stockcharts.com/freecharts/perf.php?$MSWORLD,$UST,$SPX,$DJCB,$compq
Have a great weekend.
Jack C. Harmon II, CFP®, CIMA
Principal, Harmon Financial Advisors
Registered Principal, Raymond James Financial Services
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The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.
The Nasdaq Composite Index is a market capitalization-weighted index of more than 2,500 stocks listed on the Nasdaq stock exchange. It is a broad index that is heavily weighted toward the important technology sector.
The MSCI World ex USA Index captures large and mid-cap companies across 22 of 23 Developed Markets (DM) countries excluding the United States. With 985 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
The Dow Jones Corporate Bond Index is an equally weighted basket of 96 recently issued investment-grade corporate bonds with laddered maturities. The index intends to measure the return of readily tradable, high-grade U.S. corporate bonds. It is priced daily.
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