First Quarter Highlights

March was another positive month for investors in US stocks (and ETFs that own US stocks), thanks to strong company profits, excitement about AI, and potential for lower interest rates. The positive performance is a healthy reminder that staying invested and consistently adding to your investments is a good way to build wealth over time. Let’s dive into the highlights from the first quarter of 2024.

A Stellar Start:

In March, stocks increased by 3.22%, and the total rise for the first three months of the year was over 10%.1 On average, the market grows about 10% in a whole year, but incredibly, we've seen that growth just in the first quarter of 2024 alone.2 Even better, this is the second consecutive quarter of double-digit percentage gains—a feat not seen in the last 12 years.3?

More Than Just Tech Stars:

It's not only the big technology companies that are making waves in the market anymore. Businesses of all sizes, whether big or small, have seen their stocks go up in the first quarter. Stocks in a range of sectors have climbed as well, with Energy, Communication Services, and Financials leading the way in 2024.4 This widespread growth in everything from dividend-paying stocks to value ETFs points to a healthy, well-rounded market where it’s more than just the usual suspects boosting overall success. Here’s a snapshot of the top-performing sectors:

Looking Ahead:

The beginning of 2024 has been great for investors; however, such a steady climb is not always the norm. The stock market didn't even experience a 2% drop in the first quarter, which isn't typical, even in an “up market”. As we face the rest of the year, it's realistic to expect some dips along the way—this is just how markets operate. When we inevitably encounter the first downturn, remember these fluctuations are part of the investment process. Consider how you'll handle these moments as they occur. Will you stick with your long-term plan? Will you view them as opportunities to invest more at lower prices? Making these decisions in advance can be beneficial. At Beanstox, we're here to assist you through all market conditions, keeping your investment goals in clear view. ?If you’re ready to bump up your investments with Beanstox, head back to the App to add to your account or increase your recurring deposits.

Sources:

1.?YCharts. S&P 500 Total Return Index. Total return from 2/29/2024-3/28/2024 = 3.22%. S&P 500 Total Return Index. Total return from 12/31/2023-3/28/2024 = 10.56%.

2.? YCharts. S&P 500 Total Return Index. Average annualized total return from 3/31/1994-3/28/2024 = 10.66%.

3.?YCharts. S&P 500 Total Return Index. Total return from 9/30/2023-12/31/2023 = 11.69%.

4.?YCharts. Sector returns as measures by the following ETFs from 12/30/2023-3/28/2024: Energy Select Sector SPDR ETF (XLE), Communication Services Sel Sect SPDR ETF (XLC), Financial Select Sector SPDR ETF (XLF).