MARKET UPDATE FEBRUARY 2024

SUMMARY:

• Both the S&P 500 and the Nasdaq have emerged from the bear market of 2022.  Both indices have reached all-time highs recently. 

• The Russell 2000 (small cap stocks) is still 20% below its all-time high. 

• This does not mean that we are out of danger.

• Markets will likely remain volatile until there is clear evidence that inflation is under control and that a recession will be avoided.

• The trend has been positive for the market since the end of October 2022.

The markets are off to a strong start in 2024, continuing the positive trend that began in October of last year.

Looking at the graph below, we see the strong steady move off the lows reached in October of 2022.  There were a couple of small reversals in early 2023 and a sharp reversal in October of 2023.  Since early November of last year, the S&P 500 and the Nasdaq (top two lines) have moved sharply higher.  The small cap stocks (Russell 2000) have continued to lag as this index still is down 20% from it’s high reached at the end of 2021.

Let’s take a look at bond pricing going back to 2020.  The top or blue line below represents the price of intermediate term bonds and the orange line represents to price of long term bonds. Bond prices started falling 2021 and fell off a cliff in mid 2022.

Unlike stocks, bonds have not rebounded in 2023 and 2024 because of the continued inflation and interest rate concerns.

I hope you have been paying attention to my ongoing recommendations to avoid bonds and anything other than large cap US index funds for your stock investments.  The previous two charts clearly show the cost of holding small cap stocks and bonds.  Target date fund investors and people who follow the asset allocation strategy that advisors pitch have gotten crushed over the last couple of years by that bad investment strategy.

It is not just the last few years that have been bad for the target date/financial advisor strategy. If you have been paying attention to my blog posts, you know that this investing strategy significantly underperforms over the last 30, 40, and 50 years. 

If you continue to stick with this bad strategy, you will be costing yourself and your family over $1 million in your retirement account.  Stop waiting and let us help you fix your investment issues.  We can do it in 30 minutes.  It is easy and painless.  And we do it for free.  There is no commitment or obligation.  Click the link below to schedule your “401K Instant Fix”.

https://calendly.com/beyondbuyhold/401k-session

Happy Investing,

Phil

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Disclaimers *The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.

Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.