Market & Economic Insights May 2024

In the realm of finance, patience is never about doing nothing, but rather strategically waiting for the opportune moment. As we embrace May, I find myself reflecting on the virtue of patience while eagerly anticipating the warmth of summer in Colorado - snow in May like this? Despite setbacks like injuries and surgery, I'm reminded that true patience lies in awaiting the perfect timing for things to unfold. I’d personally appreciate you anytime sunshine and warmth - one can always hope! 

Much like waiting for the sun to break through the clouds, the Federal Reserve is exercising patience in its approach to managing the economy. Having initially dismissed inflation as transient, the Fed has recalibrated their strategy in response to the persistence of inflation that clearly the Fed grossly underestimated. As we look ahead, key dates such as May 15th for the CPI report and June 12th for the Fed announcement loom large. Will the Fed adhere to the 2% inflation mandate? The answer holds significant implications for their credibility, as discussed in our April newsletter. 

In navigating these uncertain waters, we remain vigilant in rebalancing portfolios. While certain market sectors may dominate by capitalization, we're attuned to the broader landscape, advocating for tax-optimized separately managed accounts (SMA) and employing options strategies for personalized portfolio hedging. Our focus remains steadfast on managing volatility, especially as we approach the election.

Though we've yet to reach the midpoint of the year, we encourage a comprehensive review of your financial landscape. Consider aspects such as education planning, retirement strategies, tax optimization, estate planning, and insurance coverage.

Here's to embracing the promise of summer, with hopes for sunnier days ahead!