October 30, 2023

Welcome to your October 2023 update, where we’re diving into the latest financial trends, market behaviors, and even a dash of pumpkin spice for the season. 🎃

  • Inflation Peaks and Market Treats: The market has been buzzing about peak inflation rates and their impact on stocks and bonds. Historically, stocks generally outperform bonds in the 12 months following peak inflation, though past performance is not a crystal ball. Our team is keeping a close eye (or two) on this.
  • Stock Market Calm—No Ghouls Here: The stock market has been less volatile this year, with fewer +/- 2% trading days. It’s like the calm before the Halloween storm, but we’re not letting our guard down. Market conditions can change, and we’re preparing for whatever crawls out of the crypt.
  • Bond Price Drawdowns—Not So Spooky: Bonds have seen some of their largest price drawdowns recently. It’s like a financial haunted house–but don’t worry; we’ll be your guides through this maze. While bonds can offer stability, it’s crucial to remember that investment risks lurk around every corner.
  • Interest Rates and Alternative Investments: Since hitting historical lows, interest rates have been creeping up. This has led to varying performance within bond and alternative fund categories. For adventurous analysts, it’s like going to a pumpkin patch and picking through quantity to find quality.
  • Money Market Variability—Trick or Treat?: Money market returns can be as unpredictable as a bowl of Halloween candy (in the dark). Our team is monitoring these rates and your cash levels closely to ensure that your short-term investments aren’t just collecting cobwebs.
  • Capital Gains in Mutual Funds—Watch for the Witch’s Brew: The largest equity mutual funds are facing potential capital gain distribution challenges. It’s a complex potion of market gains, high turnover, and fund outflows. But don’t worry, as financial “wizards”, we making sure you’re not caught in any spells.

Fun Fact—Pumpkin Spice Economics: Have you heard that the pumpkin spice market is estimated to be worth around $1.1 billion in 2023? Ten years from now, it is expected to grow to $2.4 billion, representing a growth rate of 8.2% per year!

Pumpkin Spice Products Market Outlook & Growth Report 2033 (futuremarketinsights.com)

While it’s not direct investment advice, it’s a reminder that seasonal trends can offer unique market insights. This wraps up our snapshot of your financial world in October, from peak inflation to pumpkin spice. As always, stay diversified and give us a howl if you have any questions or need more treats for your financial journey. 🎃👻

*Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.

**This material contains forward looking statements and projections. There are no guarantees that these results will be achieved. It is our goal to help investors by identifying changing market conditions. However, investors should be aware that no investment advisor can accurately predict all of the changes that may occur in the market.