Market Commentary: Bird's Eye View for Q2 2024
“Higher valuations leave us cautious, but we’re looking for pockets of opportunity, both in the high-quality portion of the bond market as well as the relative value advantage of small-cap stocks,” says EverNest Managing Partner Frank J. Esposito in his just published 5-minute video market update.
Watch the video for thoughts on:
Large-cap growth companies continued dominating the market, with just three stocks generating almost 45% of the return of the S&P 500 Index.
Presidential election years have historically averaged about 15% for the S&P 500.
The vast majority of private loans available to investors are “covenant lite,” with highly limited protections for investors—which is one reason for caution about credit.
Where we see opportunity in 2024.
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S&P 500 Index – a market-capitalization-weighted index of the 500 largest U.S. publicly traded companies.
Russell 3000 – The index measures the performance of the largest 3000 US companies representing approximately 98% of the investable US equity market. It is market-capitalization weighted.
S&P Small-Cap 600 – measures the performance of the small-cap segment of the U.S. equity market. It includes market capitalizations of between $450 million and $2.1 billion.
MSCI Emerging Markets Index – a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of emerging markets. The MSCI Emerging Markets Index consists of 23 emerging markets country indexes.
MSCI Europe Index – captures large and mid-cap representation across 15 Developed Markets (DM) countries in Europe.