2024 Q1 Quarterly Investment Report

An excerpt from our 2024 Q1 Quarterly Investment Report: 

A surprisingly resilient U.S. economy and hopes for an AI-induced productivity surge sent the U.S. equity market steeply higher in the first quarter. U.S. and Japanese equities, Bitcoin, and gold all hit record highs. U.S. Treasuries and investment grade credit lost ground, however, especially at the long end of the maturity spectrum, as investors became more realistic about the likely timing and pace of Fed easing. High-yield bonds, in contrast, rose as credit spreads narrowed in sympathy with the strong equity rally. The Fed, unfazed by two months of higher-than-expected inflation, kept rates on hold in March. The Bank of Japan raised its policy rate from just negative to barely positive, signaling victory in its long fight against deflation (see this quarter’s Special Topic on page 5). Oil prices spiked and the U.S. dollar appreciated against most major currencies.