Stocks gained in the first three months of 2024, continuing a good run that began in November 2023. For the first quarter of 2024:
- US Large Company: +10.4%
- US Mid-Size Company: +7.8%
- International Developed Country: +5.3%
- International Emerging Markets: +1.7%
US large company stocks, often represented by the S&P 500 index, gained a lot, led by big gains in a few very large technology companies: Microsoft, Apple, NVIDIA, Amazon, Meta (Facebook), and Alphabet (Google). The top 3 stocks made up nearly 18% of the value of the entire 500-company index. (The index is more heavily weighted to the larger companies.) Some analysts are concerned that a stumble by one of those largest companies will have outsized impact. For example, Tesla had previously been in the top-10, but its unexpectedly lower sales because of increased competition, softer demand, and production problems caused a sharp sell-off in its stock price.
Overall, the US economy appears to be in good shape with low unemployment, inflation trending down, improving consumer confidence, and solid GDP growth.
Funds used to provide total returns: VOO, VO, VEA, and VWO.