The

Financial

Quarterly

Quarter 1 2024

Ivan M. Mendoza, CFA, CFP®, ChFC, CLU, CLTC, CDFA

https://www.mendozaprivatewealth.com

Mendoza Private Wealth

(305) 503-5133

Despite some inflation worries, markets soared in Q1, driven by optimism about growth and future interest rate cuts.¹

Will stocks continue to rise? Is that predicted recession still coming?

Let's take a look at what happened in Q1 and what might happen next.

Looking Back

How Did Markets Perform Last Quarter?

S&P 500

10.2^%

The broader U.S. market closed the best Q1 since 2019.¹

NASDAQ

^9.1%

The tech-focused NASDAQ soared on AI optimism and expected lower interest rates.¹

DOW 30

^5.6%

The blue-chip Dow also grew on renewed investor confidence.¹

Looking Ahead

What Factors May Influence Markets in the Months to Come?

Let's take a look ahead at some of the factors that we'll be watching in the weeks and months ahead.

Interest rates

The Federal Reserve indicated that it expects to lower interest rates in 2024. Optimism about lower rates is likely to fuel market growth. However, if high rates linger, investors may get cold feet.²

Economic data

Investors will be closely watching reports on inflation, employment, and other sectors for clues about future Fed moves and the economy's health.

Recession indicators

Recession forecasts have abated but some economists think high interest rates could still trigger a recession.^3,4

Geopolitics

Wars in Ukraine and Israel, attacks on shipping in the Red Sea, plus fresh concerns about cyberattacks could stoke geopolitical worries.⁵

"Markets had a strong start to 2024 and the bulls could still have room to run."

Not receiving our newsletter?

Get insightful info on finances and more in your inbox every month with the Insider's List.

Bottom Line

Key Takeaways for Savvy Investors

What conclusions should we draw from a high-flying first quarter?

Investors are feeling optimistic about 2024.

With the S&P 500 closing its fifth straight month of gains, it's clear that the bull market has legs.⁶

We can also see that the rally is broadening beyond a small number of technology stocks as investors build confidence in the economy.⁷

Broader confidence in company growth potential is great news for investors as it makes the rally less vulnerable to the individual fortunes of a few high-flying stocks.

When will interest rates drop?

That's the big question everyone is asking.

Interest rate forecasts are all over the place, with some economists predicting three rate cuts in 2024 and others saying the Fed may not cut rates at all.⁸

The Fed's official position is that conditions may support lower rates this year, but economists want to confirm trends in the data before pulling the trigger.⁹

We likely won't see action before summer, if not later.

Will we still see a recession in 2024?

It's looking less and less likely that a recession is on the horizon.

But, it's clear that the Fed's high rate policy is still reverberating through the economy.

Some economists believe that the Fed is sprinting toward cutting rates to stave off a possible recession in 2025.³

Bottom line: we're watching the data, staying flexible, and looking for opportunities.

Questions about markets or your portfolio? Please reach out. I'd be happy to chat.

Ivan M. Mendoza, CFA, CFP®, ChFC, CLU, CLTC, CDFA

Mendoza Private Wealth

(305) 503-5133

ivan@mendozapw.com

Sources:

1. https://www.cnbc.com/2024/03/27/stock-market-today-live-updates.html
2. https://www.cnbc.com/2024/03/20/fed-meeting-today-live-updates-on-march-fed-rate-decision.html
3. https://finance.yahoo.com/news/feds-rate-cut-projections-pointing-221015938.html

4. https://www.usnews.com/news/economy/articles/2024-02-20/leading-economic-indicators-no-longer-forecasting-a-recession
5. https://www.blackrock.com/corporate/insights/blackrock-investment-institute/interactive-charts/geopolitical-risk-dashboard
6. https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/stock-rally-extends-to-5th-straight-month-in-march-as-s-p-500-rises-3-1-81057365
7. https://www.reuters.com/markets/us/wall-st-week-ahead-broadening-us-market-rally-gets-boost-dovish-fed-2024-03-22/
8. https://www.thestreet.com/fed/goldman-sachs-updates-when-fed-will-cut-rates-in-2024
9. https://www.statista.com/chart/29055/fomc-projections-for-the-federal-funds-rate/

The S&P 500 is a stock index considered to be representative of the U.S. stock market in general. The NASDAQ Composite Index is an unmanaged composite index of over 2,500 common equities listed on the NASDAQ stock exchange. The Dow Jones Industrial Average is a price-weighted index that tracks 30 large, publicly traded American companies.

All index returns exclude reinvested dividends and interest. Indices are unmanaged and cannot be invested into directly.

Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional.

Disclaimer

No Rendering of Advice

Mendoza Private Wealth, Inc. (“Mendoza Private Wealth”) is a Registered Investment Advisor registered with the U.S. Securities and Exchange Commission (“SEC”). Mendoza Private Wealth, Inc. provides asset management and related services for clients nationally. Mendoza Private Wealth, Inc. will file and maintain all applicable licenses as required by the state securities regulators and/or the SEC, as applicable. Mendoza Private Wealth, Inc. renders individualized responses to persons in a particular state only after complying with the applicable SEC and state regulatory requirements, or pursuant to an applicable exemptions or exclusions.

This web site is intended to provide general information about Mendoza Private Wealth, Inc. It is not intended to offer investment advice. Information regarding investment products and services are provided solely to include information about our investment philosophy, our strategies and to be able to contact us for further information. Presentation of the information via the Internet is not intended to create, and receipt does not constitute, a client relationship. Internet subscribers, users and online readers are advised not to act upon this information without seeking the service of a professional accountant, attorney and/or financial advisor.

Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties under U.S. federal tax law. Clients should seek the advice of an accountant or Certified Public Accountant (CPA).

The