Broker Check

Weekly Wealth of Knowledge - Week of 4/8/24

April 09, 2024

The Weekly Wealth of Knowledge is your download of this week's most important topics related to our community, financial planning, the markets and more! April is here and it is Financial Literacy month at MONECO Advisors. Having a solid foundation when it comes to financial literacy can help support a host of various goals, such as retirement, saving for education, and debt management. All month long we will be providing you content on the importance of spending, savings, budgeting and investing.

In this issue:

  • MONECO Insights - Investing 101 (3 min read)
  • Q1 Market Update (2 min read)
  • U.S. Labor Market (3 min read)
  • BONUS: Annual Shredding Day and Sunset 5k Events!

If you enjoy our Weekly Wealth of Knowledge, don't' forget to check out our content on Facebook, Linkedin, and Twitter

-------------------------------------------------------------

MONECO Insights - Investing 101

The primary goal of investing is to potentially grow your wealth by earning a return on your capital. Navigating the world of investing can be daunting and overwhelming. Setting clear goals, educating yourself, and creating a budget are great places to start. As you read, you will learn about some key concepts, such as understanding how your risk and return will set you up for how aggressive you would like to be. In turn, you will get a better handle on the timeline you would be working with, to pursue your goals. 

Click to Read Full Article

------------------------------------------------------------- 

Q1 Market Update

The first quarter is in the books, and it was an excellent one for stocks. The S&P 500 index rode a resilient U.S. economy, easing inflation, rising corporate profits, and anticipation of summertime rate cuts from the Federal Reserve (Fed) to solid gains in March, the fifth straight winning month, and the best first quarter since 2019.

With stocks having done so well, it’s natural to think about selling. If you haven’t rebalanced in a while and hold more equities than targets, shifting some stocks into bonds or alternative investments may make sense. If your investing time horizon is long, the case for trimming equities is stronger because valuations matter more three to five years out.

If you’re focused on the next few months, consider that the latest data suggests the economy is growing steadily and inflation pressures continue to ease. Investment in artificial intelligence — still in the early innings — is giving corporate profits a boost and looks more like the early-internet period of the mid-1990s than the speculative bubble in 1999–2000. Double-digit gains in S&P 500 companies’ profits this year, which seemed like a long shot at the start of the year, are now possible.

History also suggests staying the course. Since 1950, the S&P 500 has risen 93% of the time in the 12 months following a five-month streak, with an average gain of over 12%. And down years are rare after strong first quarters. So, while stocks are due for a pullback, as the choppy start to April suggests, it’s extremely difficult to sidestep a 5– 10% decline. It’s tough to make a case for a big drop — one that might make sense to try to avoid — because of healthy market fundamentals.

The common refrain from the bears that the stock market’s gains are too concentrated has not held up lately. Technology stocks showed signs of fatigue in March, while cyclical value stocks that benefit from the improved economy picked up the slack. This rotation helped the energy, financial, and industrials sectors outperform in March while the average stock beat the index.

Turning to bonds, yields remain attractive following the latest rise in rates. A gradually slowing economy and easing inflation should limit additional selling pressure in the bond market, especially if the Fed cuts rates this summer as expected. Last week’s successful Treasury note auctions were encouraging. Corporate bond yield spreads, which tend to sniff out trouble before stocks, are about as calm as they get compared to Treasuries.

Solid fundamentals and history suggest investors stay the course, though a small allocation shift may make sense for those overdue for a rebalance or with long investing time horizons. Risks seem manageable currently, though we continue to watch inflation, rates, and geopolitics closely. As always, please reach out to your financial advisor with questions.

-------------------------------------------------------------

U.S. Labor Market

The number of Americans filing new unemployment claims increased to a two-month high last week, suggesting that the job market is loosening. Despite this, the overall economy's underlying strength, combined with continued elevated inflation, could see the Federal Reserve delaying much anticipated interest rate cuts this year. As always if you have any questions, we are here for you! 

Click to Read Full Article

-------------------------------------------------------------

 Shredding Day & Veterans Clothing Drive

We will be holding our Annual Shredding Day on June 15th. Come see all of your personally identifiable information get shredded right before your very eyes. In addition, we will also be partnering with Save A Suit (https://www.saveasuit.org/), a local charity based organization that collects professional attire for veterans who are transitioning back into the workforce. Feel free to register below, so we can ensure we have enough coffee and donuts or just show up!

Every ton of recycled paper saves 17 trees, so feel free to invite your friends and loved ones along!

Click to Register Today!

-------------------------------------------------------------

6th Annual Fairfield Police Sunset 5k - Presented by MONECO Advisors

The 6th Annual Fairfield Police Sunset 5K - Presented by MONECO Advisors is set for July 17th. All proceeds will be donated to the Fairfield Police Union Scholarship Fund & the Fairfield Police Foundation. You can run (3.1 mile) or walk (1 mile) course. We were able to increase the number of participants to 1000 this year and do expect to sell out, so don't delay, sign up today for Fairfield's most memorable night of the summer! Sponsorship opportunities available via the registration link as well.

Click to Register Today!

______________

Important Information

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

MONECO Advisors, LLC and LPL Financial are not affiliated with any other referenced entity.

This commentary reflects the personal opinions, viewpoints and analyses of the MONECO Advisors employees providing such comments, and should not be regarded as a description of advisory services by MONECO Advisors or performance returns of any MONECO Advisors client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. MONECO Advisors manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. 

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. All index data from FactSet. The Standard & Poor’s 500 Index (S&P500) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.