Market Update February-March 2024: Positive Sentiment Continues
In this market update, we look back at February and March 2024. What happened in the markets?
- Market sentiment excellent so far this year
- Robust economy and AI boost stock markets
- What if the stock market goes down again?
Stock market sentiment excellent so far this year
In recent months, stock markets have again risen sharply. February and March were therefore top months for the Peaks portfolios, with returns ranging from +0.8 % for portfolio Cautious to as much as 3.8 % for portfolio Adventurous. This puts total returns for the Peaks portfolios in 2024 at +3.2 % to 8.3 %, which is a lot for such a short period.
Table 1: Net returns of the Peaks portfolios
| Peaks portfolio | February | March | 2024 | Average yearly return since start of Peaks |
Total return since start of Peaks |
| Cautious | 0.8 % | 2.2 % | 3.2 % | 2.6 % | 17.7 % |
| Balanced | 1.8 % | 2.4 % | 4.9 % | 4.9 % | 35.4 % |
| Ambitious | 2.8 % | 2.5 % | 6.6 % | 7.2 % | 55.5 % |
| Adventurous | 3.8 % | 2.6 % | 8.3 % | 9.4 % | 77.2 % |
Good to know: These are the net returns of the Peaks portfolios for the previous two months, the year-to-date, and since the start of Peaks, after deducting Peaks’ fees, fund costs, and transaction costs. The value of your investment may fluctuate. Past performance is not indicative of future results.
The table above shows returns for a portfolio of €10,000. The returns do not take into account any deposits or withdrawals made during the month. If you have deposited or withdrawn money this month, your personal return will differ from the figures shown above. Additionally, your personal return will vary if you have invested less or more than €10,000 due to the monthly fixed costs charged by Peaks.
Table 2: Risk of the four Peaks portfolios
| Risk (volatility) | February | March | 2024 |
Average annualised |
| Cautious |
4.7 % |
4.2 % |
4.3 % |
5.7 % |
| Balanced |
5.6 % |
4.9 % |
5.0 % |
7.6 % |
| Ambitious |
6.9 % |
5.9 % |
5.9 % |
9.8 % |
| Adventurous |
8.2 % |
7.1 % |
7.0 % |
12.3 % |
Good to know: Here you can see the risk of the four Peaks portfolios over different time periods (last months, year-to-date, and average since the start of Peaks). Risk represents the annualised fluctuation in return and is also referred to as "volatility". Risk is measured by calculating the standard deviation of the daily net returns of the Peaks portfolios and converting that number to an annual basis.
Robust economy and AI boost stock markets
Inflation is easing, the US and European economies are doing well and companies are performing better than expected so far. This is helping stock prices go up. On top of that, stock markets are also helped by investors' enthusiasm about Artificial Intelligence (AI) opportunities. The Peaks portfolios also benefit from this, due to the relatively large weighting in US AI company Nvidia, which has risen by as much as +88 % in value this year. This company makes up 5.6 % of the index fund in the Peaks portfolios that invests in US stocks.
What if the stock market goes down again?
In recent months, stock markets have risen very strongly. This is great, of course, and proves once again that in investing, perseverance is rewarded in the end. But it is also important to realise that the stock markets will not always continue to rise as fast as they do now. We are currently in a good period, but there will also be times when the stock markets (temporarily) fall.
Therefore, it is sensible to prepare emotionally for a dip, so that you are not shocked when it happens. It is part and parcel of investing that the stock markets occasionally drop in value. Staying invested can even work to your advantage, as you buy in at lower prices during dips. When prices rise again, you benefit.
Table 3: Net yields of the index funds included in the Peaks portfolios
| Stocks | ISIN | February | March | 2024 | Return since start of Peaks |
|
North America |
LU0629460089 |
5.5 % |
3.0 % |
12.0 % |
145.1 % |
|
Europe |
IE00B52VJ196 |
2.2 % |
2.5 % |
8.0 % |
70.3 % |
|
Asia Pacific |
LU0629460832 |
2.3 % |
2.4 % |
6.9 % |
35.8 % |
|
Emerging markets |
IE00BYVJRP78 |
-3.8 % |
2.1 % |
1.9 % |
13.1 % |
|
Bonds |
|||||
|
European Government bonds |
IE00B4WXJJ64 |
-0.6 % |
1.8 % |
0.9 % |
-3.4 % |
|
European Corporate bonds |
LU0484968812 |
-0.1 % |
2.7 % |
0.7 % |
-0.1 % |
Good to know: These are net yields of the index funds in which you invest with Peaks in February and March 2024, for the entire year 2024, and since the start of Peaks, after deducting Peaks costs, fund costs, and transaction costs. The value of your investment may fluctuate. Past performance is not indicative of future results.
Investing always involves risks. Know that you could lose (a part of) your invested money.
Rosanne
Copywriter, Peaks
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