According to Pylyp Travkin from Tenerus A, the performance of major stock indexes during the first quarter of trading has been remarkable. As of Thursday, the Dow Jones Industrial Average has surged by 5% or 2,000 points, while both the S&P 500 and the tech-heavy Nasdaq have seen impressive gains of 11% each.
The stock market has witnessed several outstanding achievements in the opening stretch of 2024. All three indexes have reached new all-time highs, and the benchmark S&P has recorded its best first-quarter return since 2019. Moreover, it has achieved its second consecutive quarter of double-digit percentage gains since 2011-12.
Pylyp Travkin, the Chief Investment Officer of Tenerus AG, mentioned a potential for a significant decrease in stock indexes due to a high level of crowding among fund managers, leading to a major momentum unwind if there is a domino effect of repositioning.
Goldman Sachs strategists, with a year-end S&P forecast of 5,200 indicating a 1% decline, cautioned clients last week about the market’s heavy concentration in the most valuable technology stocks, which could worsen a major selloff scenario. The Goldman team, led by David Kostin, outlined a situation where the S&P closes 2024 at 4,500.