Quarterly Webinar: Q3 2024 Market and Economic Themes

Please join our Chief Investment Officer, Mike Minter, for a quarterly webinar (pre-recorded below) where we discuss ten relevant market and economic themes heading into the 3rd quarter of 2024.

Click here for a PDF copy of the Q3 market theme slides and important disclosures.

Quarterly Webinar: Q3 2024 Market and Economic Themes

Video Summary Below

Introduction

• 3rd quarter 2024 quarterly client webinar.
• Overview of 10 themes for the third quarter and the rest of the year.
• Recap of asset classes performance for the second quarter.

Q3 2024 Market and Economic Themes

1. Asset Classes Midyear Performance Update
   • Recap of financial market performance for Q2 2024 and the first half of 2024.
   • Highlights of trends: strong start for stocks, bigger companies outperforming smaller ones, low bond returns.
2. Performance Drivers
   • Two main inputs driving the stock market: earnings and valuation multiples.
   • Analysis of S&P 500’s historical earnings multiples and current trends.
   • Importance of earnings growth to sustain market gains.
3. Market Themes
   • Nvidia’s meteoric rise and its impact on the market.
   • Nvidia’s market cap surpassing significant benchmarks like the Russell 2000 and the UK stock market.
4. Equity Factors
   • Outperformance of the biggest companies in 2024.
   • Comparison between market cap-weighted and equal-weighted S&P 500 indices.
   • Low percentage of companies outperforming the index.
5. Inflation Update
   • Current trends in inflation and the Federal Reserve’s considerations for interest rate cuts.
   • Analysis of core Consumer Price Index (CPI) trends.
6. Interest Rates
   • Global trends in central banks’ interest rate policies.
   • Shift from rate hikes to rate cuts around the world.
7. Housing Market
   • Update on the US housing market.
   • Impact of higher mortgage rates on housing starts and building permits.
8. US Economy
   • Weekly Economic Index (WEI) as a real-time pulse on the US economy.
   • Trends in economic activity for the first half of 2024.
9. High Yield Corporate Bond Market
   • Current state and potential risks in the high yield bond market.
   • Analysis of refinancing risks and the impact of higher interest rates on corporate borrowers.
10. Corporate Earnings
    • Comparison of earnings growth between the “Magnificent 7” and the remaining S&P 500 companies.
    • Forecasted earnings growth for 2025 and its implications for market performance.