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  • Writer's pictureMatthew Lawson

Second Half of 2024

The first six months of 2024 for the S&P 500 was superb to say the least.  A lot of commentators want to point out that most of the return was concentrated on a handful of names, while this is correct, it still doesn’t change the fact that it was a solid start to 2024. 

As we have touched upon many times over the past year, Artificial Intelligence (AI) stocks have performed well and are likely to continue albeit perhaps a bit more measured.  Software stocks that have AI capabilities have underperformed since January and we think there is opportunity in this sector.   

Another group that has lagged since last year is small cap companies.  The disconnect between large cap companies and small cap companies is the widest it has been since 1999.  That doesn't mean the gap will close tomorrow but it does offer investors an area of the market that provides good relative value at a time when the major averages are making all-time highs.  Investors that have a longer time horizon, patience and willingness to embrace volatility may see higher returns from allocating funds to small cap companies. 

There remains a large percentage of individual investors on the sidelines or not invested in stocks and from a contrarian viewpoint, this is positive for the stock market. 



Lawson Winchester Wealth Management 

The views expressed are not necessarily the opinion of Cadaret Grant, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Investing is subject to risks including loss of principal invested. Past performance is not a guarantee of future results. No strategy can assure a profit nor protect against loss. Please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice.

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