January Comes Through

January Comes Through

February 05, 2024

January ended with a very nice upswing in the S&P 500 with it being up just over 1.5%.  The US aggregate bond market is still trying to find its path.  It was fairly sideways for the month and ended down about 0.15%.  It looks like the Federal Reserve is pushing its way back into the news cycle again.  We just can’t seem to get past their interest rate predictions.  It’s extremely frustrating that this interest rate news cycle has lasted so long, but let’s see where it’s taken us so far.

We saw a new S&P 500 high near the end of the month!  This was when the Fed seemed to be going along the path of interest rate cuts that they predicted last year.  Now, they seem to be backing off that a bit, which is causing some downsides in the market.  It’s always important to remember that ups and downs are common.  We’ve made it this far so let’s maintain our composure and not get overly excited up or down.

Topics of Interest

Have you ever wondered about market timing?  I have, of course, and I’m sure some of you have as well.  I found this article to be extremely enlightening.  Over the course of perfect investments to imperfect investments, the return margin was hardly what I would have expected.  It’s little reminders like this that we must continue to fall back on when we are deciding the perfect entry point for new investments.

I receive a lot of questions on IRA withdrawal income and how it will affect taxes.  I’m not a tax advisor, and I always believe your CPA is the best person for this answer.  I found this article that I think would be a benefit to help open up the questions to your tax advisor.

It seems counterintuitive to some people that paying an advisor is worth the money.  At this point in our relationship, I’m sure you believe that it is.  If you ever needed a reminder, check out this article that does the math for us.  I was even surprised at the difference in balances, and I read about this kind of stuff every day!

Thank you all for your trust in our firm.  Without you, we don’t exist.  Believe me when I say that it doesn’t go unnoticed.

Happy St. Valentine’s Day!  Fun fact--My first-born daughter has a birthday on February 14th.  I remember thinking 15 years ago that all my kids’ birthdays would be on holidays.  Ohhh, to be young and naïve again…

Larry Mroczkowski

President

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. All investing involves risks, including the loss of principal.