Welcome to the second quarter roundup for 2024, presented by Dina Fliss, President and Chief Investment Strategist at Global View Capital Management. Joined by Barry Arnold, Chief Investment Officer, and David Morton, Director of Research and Portfolio Manager, the discussion highlights an impressive quarter in the markets and provides insights into the strategies and trends driving current performance.
Market Performance Overview
The second quarter of 2024 has been outstanding, marking a period of significant growth and resilience. Historically, summer tends to be a slow period for the markets, often referred to as the “summer doldrums.” However, this year has defied that trend, leading to what Dina describes as a “summer sizzle” rather than a slump. Barry Arnold confirms this sentiment, noting that May, June, and early July have all shown positive performance, with the first half of July being historically strong.
Bull Market Momentum
Barry emphasizes the robustness of the current bull market, which has reached 36 new all-time highs in 2024 alone. He underscores the importance of momentum and trend-following in such a market, with key indicators like the 50- day, 100-day, and 200-day moving averages all trending upwards. Despite the potential risks and occasional dips, the long-term outlook remains positive.
The Role of Major Tech Stocks
A significant portion of the market’s gains has been driven by the “Magnificent Seven” (MAG 7), comprising major tech companies like Nvidia, Microsoft, Alphabet (Google), Meta (Facebook), Apple, Amazon, and Tesla. These companies have capitalized on the AI boom, reminiscent of the tech bubble of the late 1990s. While some view this as speculative, the momentum from these stocks has been a major contributor to the market’s performance, with Nvidia alone accounting for a substantial portion of the S&P 500’s gains.
Strategic Market Monitoring
David Morton discusses the importance of continuous market monitoring and the use of algorithms to navigate market trends. He highlights the ability of their system, AdvisorGuide, to track over 18,000 securities daily, allowing for timely responses to market changes. This proactive approach ensures that clients can stay in the market during uptrends and exit before significant downturns, thereby locking in gains and mitigating losses.
Interest Rates and Market Impact
Barry Arnold delves into the influence of interest rates on market performance. The Federal Reserve has implemented 13 interest rate hikes, the fastest cycle since the early 1980s. Despite forecasts for rate cuts, the market remains cautious, awaiting definitive actions from the Fed. Interest rate movements impact stock and bond prices, and the team at Global View closely monitors these dynamics to adjust their strategies accordingly.
Strategic Diversification and Risk Management
Global View Capital Management emphasizes the importance of diversification and tactical asset management. By researching and collaborating with specialized managers, they offer a range of strategies that cater to different
client needs. This diversified approach helps mitigate risks and optimize returns across various market conditions.
Outlook and Final Thoughts
The third quarter is expected to bring more volatility, especially with the upcoming election and potential interest rate cuts. Despite these uncertainties, the team remains vigilant, employing objective decision-making processes to
protect and grow client assets. The commitment to monitoring the markets daily and leveraging advanced technology ensures that clients are well-positioned to navigate any market environment.
Conclusion
As we celebrate the successes of the second quarter, Global View Capital Management remains dedicated to providing expert guidance and strategic insights to help clients achieve their financial goals. The passion and dedication of the team are evident in their proactive approach and continuous efforts to manage risk and maximize returns. Thank you for your trust, and we look forward to another productive quarter ahead.
If you have any questions or would like to review your portfolio, please give us a call.
This article is not to be construed as financial advice. It is provided for informational purposes only and it should not be relied upon. It is recommended that you check with your financial advisor, tax professional and legal professionals when making any investment or any change to your retirement plan. Your investments, insurance and savings vehicles should match your risk tolerance and be suitable as well as what’s best for your personal financial situation.
