META - Wedgewood Partners Q1 2024 Client Letter

2024-04-13 09:10:00 ET

Summary

• Wedgewood Partners is a money manager founded in 1988 with the goal of providing investors with a superior approach to managing investment portfolios.
• The year 2024 is off to a near-historic start with the S&P 500 Index gaining +10.5% during the quarter; over the past twelve months, the stock market has gained a stellar +29.9%.
• Top performance contributors for the first quarter include Meta Platforms, Taiwan Semiconductor Manufacturing, Tractor Supply, Edwards Lifesciences and Copart.
• The U.S. economy, in large part, has adjusted quite well to the post-ZIRP (zero interest rate) financial environment.
• Market expectations have swiftly changed in the growing expectation that the Federal Reserve might not cut the Federal Funds Rate at all this year if they do not cut in June (too close to an election after that).

The Magnificent Roaring '20's

"It's a bull market, you know." - Jesse Livermore. Reminiscences of a Stock Operator.

"The job of sustainably restoring 2 percent inflation is not yet done…the higher inflation data over January and February were above the low readings in the second half of last year…We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably down toward 2 percent." - Jerome Powell. Chairman Federal Reserve Board.

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