Chronicle of February 2024
Signature Strategy Update
U.S. Market Recap
S&P 500 went up by 5.34% in February, including dividends. Since the beginning of this year, U.S. stock market has produced a total return of 7.11%. Among Magnificent 7 stocks, Tesla TSLA 0.00%↑ performed the worst, followed by Apple AAPL 0.00%↑ and Alphabet GOOGL 0.00%↑. Meanwhile, NVIDIA NVDA 0.00%↑ and Meta Platforms META 0.00%↑ were among S&P 500 components best performers. It is interesting to see that not all of those biggest U.S. stocks were as solid as in 2023.
To read our previous article related to NVDA, click here.
Signature Strategy, year to date
Good news for our clients so far in 2024. In two months, our portfolio gained 14.4% (on a gross basis), surpassing the market by more than 7%. All top holdings performed better than the S&P.
Our strategy seeks to invest in companies across the U.S. and global stock markets with strong long-term growth, high operating profit margin, sustainable competitive advantages, resistance against macroeconomic downturn, and attractive valuation. A significant portion of our portfolio is invested in innovative companies and ultra luxury businesses.
By April, our Signature portfolio will have its 100 months of track record. If you want to learn more about our investment strategy and track record, read here.
Did you know?
When the stock market gains in both January and February, there is a 89% probability that market return will be positive over the next 12 months. The average return you will get is an amazing 10.4%!
The good news is that stock market rose both in January and February 2024.
From January 1, 1928, to February 29, 2024, the S&P500 gained in both January and February 35 times. There were 31 times in which the S&P500 continued to climb for the next 12 months. That is a convincing 89% chance.
When the stock market is positive in both January and February, the following 12-month returns range from -54.0% to 40.6%, with an average of 10.4%. The large losses correspond to the Great Depression eras of 1930 (-23%) and 1931 (-55%), as well as the Fed tightening phase of 1937 (-37%). During a 'normal' year such as 1987, the S&P500 fell by only 5.8%.
While no one can certainly predict the future, these numbers should give us hope.
