Performance Update – June 2024

15 June 2024

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Dear *|FNAME|*

A slight pull back in markets over the past month as concerns around political results as well as no sign of a rate cut from the Fed this quarter.

However, despite minor fluctuations in European equities this week, overall risk appetite remains positive, with many indices nearing or reaching record highs. US tech stocks continue to lead the market, with the so-called Magnificent 7 up 34% so far this year. However, performance within this group varies significantly – Nvidia has surged 152% this year, while Tesla has dropped 27%. Nvidia alone accounts for 35% of the S&P 500’s gains in 2024. The current market environment is relatively calm, with inflation gradually moving in the right direction and economic growth remaining steady, if not exceptional. Equity markets have effectively adapted to the shift in rate expectations since the start of 2024; initially, there were expectations of 6-7 rate cuts in the US, UK, and eurozone, but now it seems we might see only two.

This resilience reflects robust economies and central banks’ lack of urgency to cut rates. The absence of major market concerns could be a concern in itself, as we have yet to experience a significant pullback this year, and history suggests that markets eventually correct for various reasons. However for now, markets are anticipating cuts in the final quarter of this year and once received it should provide another leg up to what has been a strong year… so far!

This data is net of fund charges but does not include potential platform costs or advisor charges which are likely to alter the overall returns set out above.

We feel our portfolio positioning is sufficient for the current climate and through to the next quarter. We continue to believe China can recover having posted a posted a positive return, and the US economy can continue to grow and inflation fall.

Any questions or views, please get in touch in the usual way and have a great week!

Warm Regards

Louis Greening
Investment Specialist

Our mailing address is:
[email protected]

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