Monthly Market Update
Submitted by TLWM Financial on May 1st, 2024April was a more challenging month for investors as stock market volatility emerged following a very strong first quarter. The S&P 500 closed the month down about 4%, after a pullback of roughly 5.5%; however, the index remains firmly in positive territory for the year. There were a number of potential catalysts for the April pullback including increased geo-political tensions in the Middle East, hotter than expected inflation, and a shift in the expected start date of Fed rate cuts.
During periods such as this we are always trying to determine whether the volatility we’re experiencing is a typical, and healthy part of a bull market, or whether it’s the sign of something more significant to come.
One of the resources that we rely on to guide us is our economic dashboard. Currently, we believe that our dashboard is telling us that we’re seeing normal market volatility and that the chances of an imminent recession and prolonged market downturn are low. Today, we’re going to highlight a couple of factors that support this: