'Mind over Markets with Morningstar' - How sticky are flows, really?

Money, Markets and Masterminds

Today is our first episode of a new underlying series in partnership with Morningstar South Africa and their Head of Investments - Sean Neethling, who was on the show not too long ago.

This new series is aptly called: ‘Mind over Markets with Morningstar’ and will provide the latest insights on monthly investment trends.

So, for the foreseeable future, the first Monday of every month, we will be exploring key market developments and dissecting economic indicators, which will cover everything from equities and fixed income to commodities and alternative investments.

US Equities have continued to dominate global markets since the world emerged from the COVID-19 pandemic in 2020 and have been supported by exceptional performance by American tech companies, the so-called Magnificent Seven, leading valuations to all-time highs.

According to Morningstar data The S&P 500 returned 29.8% over the 12 months to end March 2024 and the Nasdaq delivered 39.2% over the same period. In short, if you had exposure to US equities, especially, listed tech stocks, you would have been in a very fortunate position today.

It seems that Nvidia continues to be the standout with the company maintaining its competitive edge in generative AI but we are starting to see some divergence in the performance of US tech companies.

Given the mixed earnings reports and the unclear path of interest rates in the US, what performance indicators should investors focus on to navigate this potential fork in the road for American tech companies?

Listen to this podcast to find out.