Fabulous Four
The stock indexes started 2024 with a bang. It was not because of the Beatles though! The
great start was powered by a different Fab Four. As we closed out the 1st quarter of 2024,
the term magnificent seven stock gang dropped three laggard stocks. The laggards: Tesla
down 30%, Apple down a little over 10% and Google treading water. The latest Wall Street
name was given to the remaining leaders.
The markets new Fab Four are: Nvidia, Facebook, Microsoft and Amazon. These four are
still defying gravity and riding the Artificial Intelligence wave. The S&P 500 has added
approximately 9 trillion of market capitalization since last October. We do not believe this
to be sustainable and encourage clients to stay diversified and focus on dividends and
bond coupon payments. (We know this is boring, but overtime it pays oƯ with lower risk)
We continue to expect volatility throughout 2024, but the first quarter finished up strongly
and we always enjoy up markets more than down markets as clients like to remind us.
All the best,
The Creekside Team