The Value of Staying Invested: Insights From Our Q1 Economic and Market Review

Executive summary:

  • Investors may be concerned that the surge in U.S. stocks in Q1 could spark a pullback, but history shows that strong performance to start the year can often lead to a positive return for the full year
  • While the Magnificent 7 has ruled supreme for the past few years, it may be time to look at the GRANOLAS, a group of stocks from Europe with some interesting characteristics
  • Investors may also be concerned about how stocks will react to the uncertainty surrounding the presidential election in November. We look at how stocks have behaved in past election years
  • And three years after the start of the COVID pandemic, we look at how investors who remained true to their plan fared compared to those who took a step back. Once again, we find that remaining invested through the market’s fluctuations pays off in the long run

We’ve just come through the first quarter of 2024 – and what a quarter it was! Hard on the heels of a robust end to 2023, the S&P 500 Index rose 11% in the first quarter of this year. This is the first time since 2012 that it’s had back-to-back double-digit quarterly returns. What does that mean for the rest of the year, and what else should we be thinking about as 2024 unfolds?