WEGRY - Fiduciary Management Q1 2024 Investment Strategy Outlook

2024-04-21 10:10:00 ET

Summary

• Fiduciary Management, Inc. is an independent money management firm. FMI’s equity investing strategies apply a value discipline, with a focused approach firmly rooted in fundamental research.
• Last year’s stock market momentum carried over into the first quarter, with growth stocks leading the charge (once again) across market caps and geographies.
• Is the S&P 500’s exceptional run of outperformance sustainable?

Last year's stock market momentum carried over into the first quarter, with growth stocks leading the charge (once again) across market caps and geographies. Investors seem complacent, as the fundamentals do not appear to justify the current levels of exuberance. Germany, the UK, and Japan are all either in - or teetering on the verge of - a recession. China's growth is coming under significant pressure, global trade is slowing, geopolitical risks remain elevated, and debt levels continue to march higher. The U.S. economy has been resilient but is expected to decelerate in 2024. The S&P 500 has taken on a life of its own, with an incredible concentration in mega cap technology, leaving most other asset classes in the dust in recent years. Is the S&P 500's exceptional run of outperformance sustainable? Consider us skeptical....

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