UGC Monthly Market Update | May 2024
Join UGC’s Head of Research / Co-Portfolio Manager, 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
- Large Cap Growth companies continue to outpace Small Cap value in 1Q24.
- December 2023 showed market breadth broaden and smalls outperformed on “peak rates/cuts ahead” talk from the Fed.
- “Sell in May and Go Away” strategy has faded in the past decade.
MACROECONOMIC OVERVIEW – US
- A second Donald Trump administration is an increasing focus for economic policy analysts.
- US Labor Market cooling.
MACROECONOMIC OVERVIEW – AUS
- RBA on hold.
- Australian unemployment.
STOCK UPDATE – PLATINUM ALPHA
- Pinterest Inc (NYSE: PINS) – Private Clients
SUMMARY
- Larger and growthier companies continued to outpace smaller and value in 1Q24.
- As soft-landing rate cuts edge closer to becoming a reality (forecasted by the market for Q4 this year), small caps might soon find a significant catalyst for outperformance.
- The potential for a second Donald Trump administration is increasing focus for economic policy analysts.
- US Labor Marketing cooling.
- RBA left rates unchanged, more neutral but ruling nothing out, Australian Unemployment unchanged, but creeping higher over the last 6 months with youth unemployment the most significant.
- New inclusion into the Platinum Alpha strategy; Pinterest. Shares of Pinterest popped after the company reported first-quarter results that beat analysts’ estimates and showed its fastest revenue growth since 2021.
