Growth Scare? Focus on Building a Portfolio that Can Weather the Storm

Despite still-elevated inflation and uncertainty around monetary policy, all three major equity indexes were up in the first half of 2024 on the back of AI-technology optimism and strong earnings. Notably, the Nasdaq Composite gained 18.6% and the S&P 500 increased 15.3%, while the Dow Jones Industrial Average was up 4.8%. US growth stocks (+23.5%) were among the best performers, followed by US large-caps (+15.2%) and emerging market equities (+7.7%). Bonds were mixed as high yield credits and Treasury Inflation Protected Notes rose (+2.3% and +1.4%, respectively) while 7-10 year US Treasuries and the US Aggregate Bond Index fell (-1.5% and -0.6%, respectively). Commodities fared well as silver was up 22.0%, crude oil gained 19.4%, gold increased 12.5%, and broad-based commodities rose 5.0%.