Market Commentary
In the second quarter of 2024, the U.S. market demonstrated notable resilience and strength as the S&P 500 experienced substantial gains, driven primarily by the technology and communications sectors, with Mega-cap stocks leading the charge as companies race to be the dominant AI provider. The divergence between the Mega-Cap growth stocks vs. the rest of the market became wider as the S&P 500 has gained 15.3% YTD while the Small Cap Russell 2000 has only gained 1.7% YTD. Mathematically, the indices can continue to rise with this narrow participation because the Mega-Cap weighting is so much larger than the rest of the market. Ideally, it would be best if more stocks joined the rally. Commodity prices, including oil, gold, silver, and cocoa, also surged, reflecting a broader bullish sentiment across various asset classes. The rise in these prices hinted at potential inflationary pressures, although the official inflation data remains under control. Investor sentiment was further buoyed by expectations of monetary easing, with the Federal Reserve signaling potential rate cuts later in the year. We are moving closer to the election and the recent debate may give investors concern but strength begets strength and odds suggest that it will be difficult to slow the markets momentum.
Advice Corner
Explore our 2nd Quarter 2024 articles for advice and insights on TOD and JTWROS designations, 401(k) choices, stock investing for novices, planning for retirement, steps to take when you lose your job and mid-year tax planning.
- Many people have heard about the nightmares in dealing with probate after coping with the loss of a loved one. Fortunately, there are ways to avoid these headaches and speed up the process. Learn about Transfer on Death (TOD) and Joint Tenants with Right of Survivorship (JTWROS) designations in our article. The Importance of the TOD and JTWROS Designations
- More and more employers are offering a choice between a Traditional 401(k) or a Roth 401(k). So, what’s the difference? And how do you know which one is right for you? Find out here: Understanding Your 401(k) Choices: Traditional vs. Roth
- Are you just starting to explore the opportunities and intricacies of the stock market? Investing in stocks can be daunting for beginners, but with the right approach, it can be a rewarding journey toward financial security and knowledge. It starts with understanding the basics, so read our article for some key insights as you begin to dive into this part of the financial world. Stock Investing for Novices
- When it comes to retirement planning, there is no better time to start than today! We push off many things until tomorrow. After all, we’ll get to it later, right? Financial planning for your retirement should NOT be one of those things you put off. Take a closer look at the benefits of early retirement savings and the potential cost of waiting. Planning for Retirement: You’re Never Too Young
- Did you just lose your job? Or are you anticipating this big change due to recent layoffs at your company? Losing a job can present many challenges and significantly impact your future retirement goals. We understand that this experience can be uncertain and scary, but remember, you are in control. Start by taking a breath. Then, follow these steps to get a good handle on what you will face and help reduce stress by putting a plan in place. 4 Crucial Financial Steps to Take When You Lose Your Job
- Very few people enjoy the “puzzle” that is taxes. While the tax code may be a puzzle, it can be profitable if you understand the rules and maximize your tax savings. Plus, the more you plan, the more you can avoid the stress of tax preparation after the year is over. Since we’re halfway through the year, now is the opportune time to assess your income and tax payments. Keep reading for more tips on conducting an effective summer tax review. Mid-Year Tax Planning: Why Review Your Taxes & Finances in June?
For more information, contact the Carlson Team today!
Carlson Investments does not provide tax, legal, or accounting advice. This content has been written for informational purposes only. Always consult your individual tax, legal, or financial professionals for advice tailored to your situation.
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