Insights
The U.S. equity market started the year strong on the backdrop of a robust economy and decreasing inflation. In our 1Q 2024 commentary we delve into the key drivers behind market performance, focusing on three critical questions:
1. What Is happening with interest rates? The Federal Reserve expects three rate cuts this year, but there is wide dispersion among officials regarding the trajectory of rates.
2. Are we worried about the narrowness of the market? The outperformance of the Magnificent 7 has skewed market metrics. However, we believe there are opportunities for active management outside of the large cap space.
3. How much growth is due to exogenous shocks? We analyze external factors influencing market dynamics and their implications.
This information is being provided by Kayne Anderson Rudnick Investment Management, LLC (“KAR”) for illustrative purposes only. Information in this article is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date listed on the correspondence, and KAR does not undertake to update the information presented. This information is based on KAR’s opinions at the time of publication of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. Past performance is no guarantee of future results.
