Weekly 3 For 3:   January 22, 2024   746, 493 and 124   It’s 3 For 3 time–Let’s Go! We’re Courageously Leading ON as we hit new market highs and STILL seek more. You are aren’t you?   With the S&P 500 (SPX) now trading at all-time highs, and investors wade in FOMO land–Some are will perhaps stay in that fear alongside concerns of overextension and elevated risk of a meaningful pullback. Resonate?   There is validity to those fears, but to the constantly paralyzed investors who seemingly always sit on the sidelines waiting for a better/more comfortable entry, I share a quote from Research Affiliates, Robert Arnott; “In investing, what is comfortable is rarely profitable.” This is not suggesting that blind faith in markets is inherently good, but it does touch on the cyclicality of markets and returns and that profitable, patient, long-term returns can feel uncomfortable. In fact, I’ll add (since I struggled to quote a women in investing), Courage is finding and trusting a Team with a track record and a granular, client-centric commitment for better client experiences through all market cycles. THIS is what I mean by being courageous in 2024.  Courage is what gives us the motivation and drive to take that first step even when its scary or uncertain. Simply reframing how you feel about the market and your portfolio’s direction–your PLAN is a big, courageous step.    PS: Find the 124 and you’ll be this week’s winner! Stay tuned….

Week in Review:

Stocks Dip, Then Rally Stock prices dropped early in the week before rising to new highs as the week ended. The four-day trading week began with more Q4 bank earnings, which disappointed. The news pushed the financial sector and the broader S&P 500 Index lower on Tuesday. The yield on the 10-year Treasury climbed after a Fed Governor said the central bank may not adjust rates as much as markets expect. That and a stronger-than-expected holiday retail sales report put pressure on stock prices. Tech stocks drove the Thursday rally, with the S&P and Nasdaq recouping their 2024 losses. Stocks continued their tech-led climb on Friday, with the S&P 500 rising to an all-time high—its first record close in over two years. The Nasdaq gained 1.70% on Friday, capping a solid week. Here’s your 3 For 3:   746:   The S&P 500 (SPX) hit an all-time high last Friday (1/19) for the first time in over two years. More specifically, it took SPX 746 calendar days to break above the January 2022 watermark.   The length of time it took SPX to make a fresh all-time high is rare; in fact, since 1928 this 746-day gap is the seventh longest in history. If only counting since the S&P 500 became the S&P 500 in 1957 (S&P 90 prior), it ranks as the sixth longest stretch. So, however you decide to frame the data, it is rare we see this much time pass between all-time highs.    An interesting stock stat since the last all-time high on January 3rd, 2022: Of the current SPX members, the best performing name (from 1/3/22 – 1/19/24) is currently Fair, Isaac & Company (FICO) with a gain of 184%. And no, NVDA is not the second best performing…it currently ranks sixth behind MPC, LLY, BLDR, and CAH.   493: Since the index hit its latest low in October 2022, seven stocks — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla — have collectively risen nearly 117 percent, far outpacing the performance of the other 493 companies in the S&P 500. The “Magnificent Seven” account for approximately 29% of the entire weighting–of  all the 500 stocks, measured in size or market “cap,” of S&P500 currently.    Over the last twelve months, their gains have accounted for more than 60 percent of the return in the S&P 500. Tesla remains lower than it was when the S&P hit its trough in October 2022, but over the last twelve months, the company has surged more than 64 percent, responsible for nearly 3 percent of the S&P 500 rally on its own.   What of the 493? SIZE, it happens, DOES matter. The “Magnificent Seven” were not the best performing in the S&P 500 since the 2022 trough. Royal Caribbean, the cruise line, rose 212 percent, for example, and General Electric has risen over 160 percent since October 2022. However, these companies hold less weight in the index because they are much smaller, and each is responsible for less than 1 percent of the index’s move since then.   More than half the companies in the index are higher than they were when the S&P reached its previous peak in January 2022. Some analysts say this is a sign that the rally has more room to run as those stocks that have lagged behind begin to catch up, bolstered by greater optimism over the outlook for the economy. Others warn that it may simply be the rise before a fall, especially as the economy continues to slow, weighing on those same companies.

Text Text

Winners and Losers:

Winners:   It should come as no surprise with Friday’s big tech rally that last week’s winners are all tech names and thanks to our new manager/partner Zacks, Alphavest clients are participating in what feels at time like a Courageous investment.

Losers:   Note a Magnificent Seven member, Tesla/TSLA makes the losers list for last week. Also of note EDV–long duration fixed income/bonds selling off as interest rates touched over 4% again.

Join us!   Courageous Leadership: 2024 January 24, 2024 5:30-7 PM Engage with Alphavest co-presenters for Q&A: Helen “Cokie” Cox, CEO & Elizabeth Breaden, CIO

 Grateful for what’s in STORE in ’24,

Advisory Services offered through 
Red Triangle, LLC DBA Alphavest

PS: Grab a spot to review in January! First slots go to those who use our new text number! Text us at; 1-866 MOALPHA/866-662-5742 and of course, you can email or call anytime, too!

Subscribe to this weekly update. AND–if you enjoyed this 3 For 3,

The greatest thank you can give is a comment here or forward it to a friend. Thank you!