Global Stock Market Trends and Analysis: First Quarter 2024 Performance Review and Portfolio Activity
Global Stock Market Trends and Analysis: First Quarter Performance Surpasses Expectations
Global markets have seen their best first-quarter performance in five years, driven by resilient corporate profits, enthusiasm around AI, and expectations for interest rate cuts. The global economy has defied expectations, with recession worries weakening.
In a broad market rally, stocks, bitcoin, and gold have all seen gains. The AI boom, particularly with chip designer Nvidia, has fueled market gains, with Nvidia adding over $1 trillion in market value after an 82% rise in the first three months of the year.
A Goldilocks economy is supporting equity markets, with consumer spending on services and favorable unemployment rates. Investor sentiment remains optimistic, and solid corporate fundamentals are expected to lead to another quarter of earnings growth, indicating that the global equity rally still has room to run.
Performance Review: Mar Vista’s Global strategy returned +6.52% net-of-fees in the first quarter of 2024. While some stock selections within information technology, consumer staples, and real estate negatively impacted performance, top contributors like Walt Disney, TransDigm, and Amazon saw significant appreciation.
Outlook: Investors are optimistic about the current market situation, with strong first quarters historically translating to positive years. While valuations are above historical averages, a strong global economy continues to drive market momentum. Remaining vigilant against potential risks like inflation or disappointing earnings is crucial.
Portfolio Activity: During the quarter, investments were initiated in Novonesis and capital was added to Adobe, Alphabet, Nestle, and Unilever. Lower conviction in Honeywell and Reckitt Benckiser prompted investment liquidations.
Overall, the global stock market’s performance in the first quarter of 2024 has exceeded expectations, with strong corporate fundamentals and positive investor sentiment driving gains across various sectors. Investors remain optimistic about the market’s potential for continued growth in the coming months.
