March 2024 Market Review - Trajan Wealth

"The problem with interest rates are that you are not modeling a single number, you are modeling a whole term structure, so it is a sort of different type of problem."
- John Hull, Professor of Finance, University of Toronto

PHOENIX - Arizonar -- Trajan Wealth's Chief Investment Officer, Udayan Mitra, CFA, analyzes March's financial market. His insights are condensed below; read the full review here.

March 2024 Market Review
  • YTD returns on domestic equities range from 6.92% in small and mid-cap stocks to 10.55% in the S&P 500. Bond returns have started to recover with dovish language emanating from the US Federal Reserve Bank on the future direction of monetary policy.
  • Fed Chairman Powell has indicated the FOMC may be open to reducing the Fed Funds rate before inflation reaches the 2% target.
  • The Fed has room to reduce the overnight rate—the market anticipates rate cuts of between 0.50% and 0.75% by year's end. However, we believe longer-term rates will remain under pressure throughout the next cycle.
Trajan Wealth Insights & Recommendations:
  • Rapidly growing Federal Government debt means we're cautious about intermediate and long-term interest rates, believing the days of sub 2% yields on %- year and 10-year notes are behind us.
  • We advocate an elevated level of diversification across asset classes and develop specific asset allocation perimeters catering to individual risk-tolerance thresholds. Given higher intermediate and long-term bond yields and the prospect of slower economic growth, high-quality but moderate-duration fixed-income assets should command a higher weighting in most portfolios.
  • With interest rates projected to be higher in the next cycle, there's a possibility of "repricing" in certain interest rate-sensitive sectors. High-quality income-producing assets may be available at dislocated prices, offering attractive entry opportunities. We're actively seeking out these opportunities; they help reduce the duration of client portfolios through higher cash flow while dampening overall volatility.
About Trajan Wealth
Trajan Wealth, LLC was founded in 2012 by CEO Jeff Junior. Before his 20+ years in the financial services profession, Jeff served in the United States Marine Corps. He continues to serve his clients and employees with the utmost service, respect, and attention to detail.

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By using low-cost, diversified portfolios under its fiduciary standard and working closely with its investment advisors and estate attorneys within one office, the company provides long-term support for client's retirement needs and estate plans, including wealth accumulation and tax planning strategies. The firm has multiple locations in Arizona, Colorado, Florida, Georgia, Texas, and Utah.

Schedule a complimentary consultation: or 1-800-838-3079.

*Advisory services offered through Trajan® Wealth L.L.C., an SEC registered investment advisor. Legal services are offered through ​Trajan® Estate, L.L.C. ​in Arizona and Utah, and independent law firms in other states.

Tami Hampshire, Trajan Wealth

Source: Trajan Wealth

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