"The most contrarian thing of all is not to oppose the crowd, but to think for yourself." - Peter Thiel.

PHOENIX - Aug. 20, 2024 - PRLog -- Trajan Wealth shares its latest Market Review. Read the full review here.

July 2024 Market Review

• The sharpest pullback in domestic equity indexes occurred in the large-cap, Big Tech sectors, particularly among the "Magnificent Seven." While valuations have now adjusted to more reasonable levels, we believe many of these companies still have strong business models and growth prospects. We plan to maintain positions in some of these companies in our active equity strategies, but will adjust weightings as needed - based on their relative attractiveness compared to other sectors.
• The July U.S. employment report triggered a decline in growth expectations as unemployment rose from 4.1% to 4.3%, up from 3.7% at the end of 2023. This increase signals a slowing economy, impacting consumer spending, business investment, and corporate earnings. Consequently, markets saw a steep pullback in late July, with Tech-heavy indexes like the S&P 500 and NASDAQ hit hardest, while bonds rallied on the anticipation of future Fed rate cuts.
• Many clients may understandably question remaining invested in US equities since there appear to be signs indicating a deceleration of economic growth. We caution against the impulse to "time the market" in anticipation of a sustained pullback, if only because "market timing" also involves reinvesting when one believes the sell-off is in the proverbial rearview mirror. Getting the timing right is a hazardous task and the record of market timers is abysmal.

• We recommend clients with highly concentrated allocations to large-cap US equities consider increasing the weightings of fixed-income assets in their overall portfolios, to help dampen unforeseen volatility.
  
  
• For eligible clients, investments in Private Equity, Real Estate, and Infrastructure through limited private partnerships may further diversify their asset allocations and capture a certain level of uncorrelated returns (alpha) from uncrowded off-market deals. As well as various tax-efficient structures.
  
  
• Stay informed and adaptable in such a dynamic market environment. For a portfolio review, call our Portfolio Management Group at 1 (800) 799-3320.