The Best And Worst Performing Assets Of March And Q1 2024

As DB's Henry Allen writes, the first quarter of 2024 saw another strong performance for risk assets, with many stock indices reaching all-time highs, though it was crypto that once again blew everyone away.

That was driven by growing hopes for a a dovish Fed, soft economic landing, as well as ongoing optimism around AI. Indeed, the S&P 500 was up more than +10% in Q1, marking the first time in over a decade that it’s seen back-to-back quarterly gains in double digits. Meanwhile in Japan, the Nikkei saw its strongest performance since Q2 2009, and surpassed its previous record high from 1989, largely on the back of the country's collapsing currency which has been the worst G7 performer in the past year. But even as risk assets did well, bonds saw a weaker performance, as more persistent inflation and the strength of the economy led investors to price in fewer rate cuts.

Quarter in Review - The high-level macro overview