Blog Article

March 2024 Market Update

Kristi de Grys

By Kristi de Grys, Chief Operating, Investment, and Compliance Officer
Published On 03/14/2024

As investors have become more confident in the prospect of a “soft-landing,” markets have returned to reacting normally to economic news—good economic news means markets go up and bad economic news means markets go down. In the period of rising interest rates, this typical relationship had been thrown on its head. With positive economic news and strong earnings reports continuing, most assets delivered positive returns in February and early March.

 

While most investors continue to focus on the U.S. market, a noteworthy milestone was reached by Japan’s Nikkei 225 Index. After 34 years, the index hit a new all-time high, surpassing its previous record set in December 1989. It is both a note of optimism and a reminder of how long it can take markets to recover after a period of extreme outperformance. If you look back at conditions in 1989, belief was rampant that Japanese companies were poised to outcompete the rest of the world and their stock valuations reflected that. Six of the top ten companies in the world were based in Japan and U.S. kids were learning Japanese. A decade later only two Japanese companies were in the top twenty. The lesson we take from the Nikkei’s run over the past 34 years is to be cautious about putting all your eggs in one basket, especially when everyone else is putting them in the same basket too.

 

 

 

 

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source.  Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.

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Kristi de Grys

By Kristi de Grys, Chief Operating, Investment, and Compliance Officer

As Chief Operating, Investment, and Compliance Officer, Kristi is responsible for the firm’s investment offerings, client service, operations, and compliance. She and her team are focused on delivering ever greater value to our clients through outstanding service, diversified investment offerings, and easy-to-use technology.

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