1Q 2024 Market and Economic Overview

The first quarter of 2024 commentary said that expectations of interest rate cuts by March 2024 were not met, as the US Federal Reserve did not cut rates and some inflation readings came in higher than expected. Central banks around the world continued to balance support for economic recovery against inflationary pressures. Market expectations moved to fewer than three rate cuts before the end of the year. The report also discussed US interest payments on government debt under different interest rate scenarios.

Strong company reports continued to support equity markets. The report noted that, among the seven large US technology companies that had led markets, only three had started the year strongly, that the semiconductor industry was experiencing supply chain bottlenecks, and that an earthquake in Taiwan could cause further delays. US economic data remained strong overall, while European data were weaker than expected.

Since 2023 there had been a steep increase in consumer loan delinquencies. By the end of 2023, 7.7% of auto loans and 8.5% of credit card loans were more than 30 days overdue. The US unemployment rate rose slightly to 3.9% by the end of February 2024, and job openings reported in the JOLTS survey fell significantly. Commercial real estate prices were declining as remote working reduced demand for commercial properties, and small US banks had on average 44% of their loans directed towards commercial real estate.

Important information: This snapshot summarises MWC Group's market commentary for the period shown and is provided for general information only. It is not investment, tax or legal advice, a personal recommendation, or an offer or solicitation to buy or sell any investment, and it does not take account of your personal circumstances. Views and figures reflect conditions at the date of publication and may since have changed. Past performance is not a reliable indicator of future results. The value of investments and any income from them can fall as well as rise, and you may get back less than you invested. Exchange-rate movements can affect returns. Market data comes from third-party sources believed to be reliable, but its accuracy cannot be guaranteed. Please seek personal advice before making any investment decision. Issued by Manentia Wealth Consulting Group AG, Ober Altstadt 18, 6300 Zug, Switzerland.