The final few days of March saw a positive trading week, with the median stock in the Russell 3000 index gaining 2.2%, and the Russell 3000 Value index outperforming the Russell 3000 Growth index by a wide margin. This shift towards value stocks is not surprising, as the R3KV is attractively priced relative to the R3KG, similar to the conditions seen before the Tech Bubble burst 24 years ago.
Economic data for the week were mixed, with the Conference Board’s measure of Consumer Confidence edging down slightly in March, while the Univ. of Michigan’s Consumer Sentiment gauge for the same month came in better than expected. Q4 real GDP growth was revised upward to 3.4%, but the big economic news came on Friday when the Core Personal Consumption Expenditure showed a 2.8% year-over-year increase in February. Personal income for the same month was slightly lower than forecast, but consumer spending exceeded expectations with a 0.8% monthly gain, indicating a healthy economy.
The data suggests that the economy is not headed for a hard landing, and investors can look at first quarter winners and losers to make informed decisions. The Prudent Speculator’s newsletter offers a look at the advancers and decliners for the quarter, showing historically that winners tend to outperform losers. This information can help readers make informed decisions about which stocks to purchase.
For more in-depth analysis and regular reports on stock market news, investing tips, and economic trends, readers can sign up for The Prudent Speculator’s weekly commentary. By subscribing to the newsletter, investors can receive valuable insights and free stock picks to help navigate the ever-changing financial landscape.
