Stableford Capital Market Commentary - February 2024

Equities were up 5.2% in February, fueled by earnings reports that beat expectations and the continuation of the soft-landing narrative.

The economy (i.e. the “real” economy as opposed to Wall Street) is performing better than expected by most measures. Equities reflect this. However, they are starting to feel a bit stretched on valuation, driven by the promise of “AI”.

Valuations can remain excessive for long periods, so this may go on for a while.

It is also possible that earnings growth accelerates enough for stocks to “grow into their multiples”. This seems like the less likely scenario, but it could happen. Alternatively, any hint of a slowdown or misstep by one of the large-cap high-fliers is likely to result in a pullback as markets are close to pricing in perfection.

Read the February 2024 Market Commentary to get a detailed overview of the situation.

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This market commentary was written and produced by Stableford Capital, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.

S&P 500 INDEX: The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure the performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.