Analysts Corner: 04/30/2024 – Can the Rally Continue?

Weekly Market Recap

A look back at the financial markets over the past week and a look ahead at key economic developments this week.

Source: JP Morgan Asset Management

Weekly Macro Recap

A look back at key macroeconomic and geopolitical developments that help us contextualize the current investing landscape.

Source: Luke Gromen, FFTT

Charts: Geopolitics Are Changing Fast. Here is What Data Says

The geopolitical landscape is shifting. The era of globalization is entering a new phase. Wars, elections, and protectionism are all contributing to a less certain future.

Source: Savvy Investor

Fidelity: Stocks May Have Room to Run

Investors may worry that the stock market rally that began in October 2022 and accelerated late in 2023 has made equities expensive. As of March, however, stocks’ valuations relative to bonds stood near the middle of their historical range going back to 1962, reaching the third quartile (left). After relative valuations reached similar levels in the past, the S&P 500 advanced about 74% of the time over the next 12 months (right).

Source: Fidelity

Corporate Bonds Still a Bright Spot

“We expect corporate bonds to deliver positive returns in the coming quarters, primarily due to the attractive yields. With money market rates becoming less attractive as interest rate cuts loom, further supporting inflows into corporate bonds look likely.“

Source: BNP Paribas