Long-Term Investing in a Shifting Landscape
The second quarter of 2024 provided the clearest signals yet that the Fed’s interest rate hiking cycle is having its intended effect. Consumer demand downshifted, housing slowed, and corporate loan defaults increased.
After the Hardware Boom: Long-Term Value Creation in the Generative AI Era
The modern technology stack can be visualized as an advanced jet airplane. Computer hardware is the jet engine and the fuselage; the chips, servers, and networking gear that provide the power and backbone for flight.
S&P 500 Achieves Record Start in Early 2024, Driven by AI Optimism
On the surface, the first six months of 2024 were a utopia for investors. The S&P 500 returned more than 15% with very little volatility. This advance occurred despite the Fed not cutting interest rates and with inflation remaining stubbornly elevated.
Investors wait for Fed’s next action as alternative fixed income sectors posted positive returns
The first quarter of 2024 built on the strength of last year by posting a gain of more than 10 percent for the S&P 500 index, the best opening quarter for the equity market since 2019.
How 2023’s market strength continued into the new year
Whether the markets will continue ascending for the remainder of the year will likely be predicated on corporate earnings. Additionally, investors will need to navigate potential volatility caused by the timing of rate cuts by the Federal Reserve, a presidential election, and the overall health of the consumer.
A Long-Term Focus on Companies Capable of Benefiting From Change
Narratives and themes regularly influence parts of the economy and financial markets. Occasionally, such themes become so dominant that, for a period, they disproportionately drive groups of stocks, both positively and negatively.
Navigating Unpredictability Requires a Long-Term Approach
The fourth quarter, and 2023 in general, provided yet another example of how rapidly things can change in capital markets. After weak returns in the third quarter, intermediate and long-term interest rates moved down sharply to end the year.
Matthew Kennedy
Matthew Kennedy joined Riverbridge Partners in 2023. As a research analyst, Matthew is responsible for investment research for Riverbridge’s Income and Stability investment strategies. Matthew began his career in financial services at Deutsche Bank, specializing in cash equities. Prior to joining Riverbridge, he served as a fixed income officer for Securian Asset Management. Beyond his […]
The Importance of Earnings Power Amidst Changing Market Expectations
Against the backdrop of low expectations, 2023 helped wash away the sour taste of 2022. The S&P 500® index returned more than 26 percent and all major indices posted handsome advances.
Committing to a Long-Term Strategy in the New Year
Nearly every financial publication this time of year includes forecasts for everything from stocks to bonds to GDP growth, inflation, employment, interest rates, election season, and geopolitical unrest.