PNC Directions Portfolio and Performance Review

 

1-month

1-year

3-year

5-year

Russell 3000

3.23%

29.29%

9.78%

14.34%

MSCI ACWI ex USA

3.13%

13.26%

1.94%

5.97%

Bloomberg US Aggregate Bond

0.92%

1.70%

(2.46%)

0.36%

 

Source: Morningstar

  • Corporate Profits on the Rise: Corporate profits rose by $133.5 billion in the fourth quarter of 2023, a 4.1% increase from the 3rd quarter. Corporate profits have now risen for three straight quarters, and this was the largest increase in profits since the second quarter of 2022.
  • Consumer Spending Jumps: Consumer spending increased 0.8% in February, marking the largest nominal increase since June 2022. For more than a year, consumer spending has been a major contributor keeping the U.S. economy growing, and its resilience has led many to feel the U.S. will avoid a recession in the near term. As inflation and bond yields remain elevated, market participants will continue to keep a close eye on how these factors will impact consumer spending. 
  • Manufacturing Moves into Expansionary Territory: The ISM Manufacturing PMI, a measure of the health of the manufacturing sector in the U.S., increased to 50.3 in its most recent report. A reading above 50 is a sign the manufacturing sector is growing, and this report is the first time since September 2022 that the Manufacturing PMI came in above 50. 
  • Federal Reserve Holds Rates Steady: At its most recent meeting, the Board of Governors of the Federal Reserve voted to hold its benchmark rate steady, this amid a modest resurgence in inflation. While this was what markets largely anticipated, comments from Federal Reserve members since then have made it clear that the Federal Reserve is willing to keep rates higher until inflation has been tamed. Markets rose following the meeting before falling off slightly only days later, but the S&P 500, NASDAQ and Dow Jones Industrial Average still all finished the month higher.

  • U.S. MidCap Growth was a top contributor for the second month in a row with the S&P MidCap 400 Growth index rising 5.75%
  • U.S. MidCap Value showed that MidCap stocks were strong performers across the board, with the S&P MidCap 400 Value index increasing 5.40%
  • U.S. Large Cap Value was another top contributor with the S&P 500 Value index climbing 4.55%

  • Emerging Markets were a detractor, with the MSCI Emerging Markets index increasing only 2.48% 
  • U.S. Large Cap Growth went from being a top contributor last month to a detractor this month, with the S&P 500 Growth index returning 2.13% 
  • Fixed Income was a detractor for the second month in a row, despite posting positive returns, with the Bloomberg U.S. Aggregate Bond index rising 0.92%

There were no asset allocation changes during the month of March. We continue to strategically favor Small-Cap, Mid-Cap and Emerging Markets equities for long-term growth potential. In Fixed Income, we favor diversified Core Bond fund(s) that balance current yield with the risk of interest rate sensitivity.

We continue to diligently monitor the markets and your account, and we will keep you abreast of any changes to your portfolio allocation and investment selection that we deem appropriate so that you’re well positioned for what’s ahead.

For questions about your account holdings or performance, please contact your PNCI Financial Advisor.

For questions about your account holdings or performance, please contact your PNCI Financial Advisor.