Carlson Quarterly – Q1 2024

March 31, 2024

Market Commentary

The equity rally off the October 2023 continued into the first quarter of 2024 as the S&P 500 rallied to new all-time-highs with a gain of 10.16%. The market has experienced an uninterrupted rally for 5 straight months appreciating more than 25%. Large capitalization growth stocks continue to be the beneficiaries of the present environment with the Focus on the performance of the Magnificent-7 and the momentum of Artificial Intelligence, particularly Nvidia (+82% YTD), as the Nasdaq-100 rallied 8.5% in the quarter. With all the focus on go-go growth names, the complexion of market leadership began to shift in February as value started outperforming growth and performing slight better for the quarter. Energy and Materials, for instance, were big movers in the second half of the quarter. Small capitalization stocks remained challenging underperformers as the Russell 2000 only rallied 4.8% in the first quarter. And gold even showed up in the first quarter, rallying 7.4% but massively overshadowed by its digital competitor Bitcoin, up 64.8%. The Presidential election, geopolitics and FOMC watching are top on most market watchers list while digesting first quarter earnings in the next few weeks will be a priority in the immediate future.

Advice Corner

Explore our 1st Quarter 2024 articles for advice and insights on the Russell 3000 Index, cash management, international investing, consolidating retirement plans, traditional vs. Roth IRAs and lending money to adult children.

  • Cash Management Matters – White Paper – Ever since the Federal Reserve first raised the federal funds rate in March 2022, “cash management matters again” for individuals. At Carlson, the relationship management team wants to ensure that idle cash (i.e., not invested with us) is earning a competitive, high interest rate for clients in this new environment. Read our white paper to find out more.
  • A Guide to International Investing – According to Charles Schwab, 85% of U.S. investors have “home country” bias in their portfolios, meaning the vast majority of their stocks and bonds are from U.S.-based companies. Why? Because we tend to invest in what we know. Before diving into international investments, it’s essential to understand the three main categories along with their benefits and risks. Read on for a breakdown of developed, emerging, and frontier markets.
  • Why Consolidate Your Retirement Plans? 7 Key Questions, Answered – Everyone needs a plan—whether you’re a football coach before the big game, a college student trying to get through finals, or someone striving for a comfortable retirement. And it’s much easier to stay organized and execute a plan when your retirement accounts are consolidated! So, why not merge your retirement accounts into one IRA? Here at Carlson Investments, we are all about simplifying your money matters! Read on for answers to seven key questions about consolidation.
  • Traditional vs. Roth IRAs: Determining Your Ideal Retirement Account – When evaluating your retirement account options, one of the first things you’ll need to do is decide between a Traditional and a Roth IRA. Each offers its own benefits and has specific requirements. However, it’s essentially a matter of whether you want the tax benefit upfront when contributing to your IRA or whether you want your tax benefit later when taking distributions. So, which type of IRA is right for you? Read on for a breakdown of each and its considerations.
  • Lending Money to Adult Children: The Dos and Don’ts – Act 1, Scene 3 of Hamlet instructs us, “Neither a borrower nor a lender be.” This advice has a lot of good intentions when it comes to family and friends because no one wants to be in a situation of chasing down a friend for money they have not paid back. In some circumstances, a loan to an adult child might be a good solution for both the parent and their child. Check out the benefits and mistakes to avoid, along with some tips for navigating this sensitive situation in our article.

For more information, contact the Carlson Team today!

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