2024 Q2 Market Review
Leonard Golub, CFA, reviews performance trends and model portfolio updates. New variations of our Global, U.S.-only, and ESG models are introduced. Leonard also discussed diversification techniques for managing political uncertainties in the U.S., including residency or citizenship by investment. Guest presenter, Oscar Barbadillo of Henley & Partners introduces their services in this area.
Key Points
New Capital's portfolios performed well in Q2 2024, with strongly positive returns.
U.S. benchmarks outpaced global ones, driven by large tech companies, AI investments, and growth stocks, while small-cap and value stocks lagged.
New model portfolios include the Global Market Model, which has no factor tilts, the US-Only Core and US-Only Market Models with and without factor tilts, and the new U.S.-only ESG Model.
The pro forma modeling overview involves estimating the past performance of new portfolios, utilizing historical proxies when data for certain investment instruments is lacking.
Current market conditions show that U.S. stock valuations, particularly the S&P 500, are overvalued compared to the historical average. International stocks are undervalued in comparison to the U.S. market. In terms of sector and size analysis, large-cap growth stocks dominate, while mid and small-cap stocks are less expensive.
In response to U.S. political turmoil, diversification strategies include global portfolios to diversify across global markets, diversified custody to store assets in different countries, minimizing political exposure through travel, making political donations to influence outcomes, and exploring alternative residency and citizenship options.
Henley & Partners, the global leader in migration by investment, helps individuals secure residency or citizenship through financial contributions or investments, offering benefits such as residency, enhanced travel freedom, and economic opportunities.
Q2 Market Review Slides - from Dimensional Fund Advisors