The 1Q of 2024 started off with a bang, the S&P 500 ended up 10.4% through the end of March, the 11th best 1Q start of the market, continuing its climb from 2023. Whats interesting is that the 1Q 2024 returns were not the market leaders of 2023. Here are two charts below.
You’ll see that in 2023 Tech dominated market returns and much of the news going to the “Magnificent 7” stocks. To start this year, you’ll see the tech is no longer the leading driver of the market and only two of the “Magnificent 7” – Nvidia and Meta are in the top 30 stocks of 1Q 2024. So, we are seeing a rotation into other asset classes, which we feel is good for the overall market and our diversified investment strategies.
In addition to a rotation in sector performance we enter an election year. Election years tend to be filled with lots of noise, but little news.
A few weeks ago, we sent a market update by our strategists, Michael Antonelli and Ross Mayfield where they talk about Elections and Your Money. You can watch the video here:
If you had time to watch it, at the end of the day, data shows us elections do not matter. Since 1943, under all administrations, the market has seen growth. See the chart below:
In addition to that, election years tend to be one of the best years of an election cycle. As a matter of fact, going back to 1944 only two Presidential election years have been down years and the average return for the year is 10.8%. Mind you, one of those years was 2008 which was the Financial Crisis. See details below. Making a long-term investment change based on a short-term events hasn’t paid off.
Other BVB and Baird Updates
Curt Brewer, JD, CFP® and Rick Verthein, CFP®, CPWA® were both recognized by Forbes as a Best in State Wealth Advisor. These results were published on April 3, 2024 and the ranking is based on June 30th, 2023 data. The link for the whole list can be found here: https://www.forbes.com/lists/best-in-state-wealth-advisors/?sh=f5490856ab97
Ashley Brown, CFP, CDFA and Rick Verthein, CFP, CPWA visited the Baird Trust headquarters in Louisville, KY to learn more and meet the leadership of the newer Baird Trust division. Baird Trust is a new offering for our clients that provides in-house Trust Administration, Estate settlement, Investment management and charitable solutions for individuals, families and institutional clients. For clients with over $2 million dollars of investible assets and want to learn the pros and cons of having a corporate trustee serve on your behalf, we’d be happy to have the conversation how Baird Trust can help.
Investment & Wealth InstituteTM (The Institute) is the owner of the certification marks “CPWA,” and “Certified Private Wealth Advisor.” Use of CPWA, and/or Certified Private Wealth Advisor signifies that the user has successfully completed The Institute’s initial and ongoing credentialing requirements for investment management professionals.
Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNERTM and CFP® in the U.S.