UGC Monthly Market Update | March 2024
Welcome to the UGC’s Monthly Market Update for March 2024.
Join UGC’s Co-Portfolio Manager / Senior Investment Analyst, Huw Davies, as he takes a deep dive into the latest financial market trends and conditions for the US and Australia, as well as providing an in-depth analysis of the stock markets.
Don’t miss out, CLICK HERE to get the latest video education from UGC.
MARKET OVERVIEW – US
- The S&P 500 had one of the longest streaks without a 2% one-day decline since 2000.
- The current bull market gains are not outsized relative to history.
- Magnificent 7 Corporate Executives are dumping shares at the fastest rate since 2021.
- Markets still favouring Quality Growth.
- Non-Profitable Tech relative to US10YR Yields.
MACROECONOMIC OVERVIEW – US
- US Rate-cut expectations were revised downward last week.
MACROECONOMIC OVERVIEW – AUS
- Australian inflation.
- What is feeding inflation…
MARKET OVERVIEW – AUS
- Valuations concerning investors but here at home there appears to be some value.
SUMMARY
1. The S&P 500 had the 3rd longest streaks without a 2% one-day decline since 2000.
2. The current bull market gains are not outsized relative to history.
3. Magnificent 7 Corporate Executives are dumping shares at the fastest rate since 2021.
4. Market still heavy on Quality-Growth. Non-Profitable Tech Stocks continue to lose ground to Big Tech.
5. We remain cautiously optimistic but continue to have one foot at the door to re-apply hedges if market starts declining again.
6. US Financial Stress has been falling, revising US Rate-cut expectations downward.
7. Full-time employment is starting to roll over while part-time payrolls are rising substantially.
8. Inflation in Australia is better than forecast but flat for now.
9. Australian Stocks showing value as analysts revise earnings estimates higher.
