PHOENIX - Arizonar -- Trajan Wealth's chief investment officer, Udayan Mitra, CFA, analyzes June's financial market and provides recommendations. His insights are below; you can read the full review here.

June 2024 Market Review

• Trajan Wealth is pleased to announce that the S&P 500 and NASDAQ indexes reached record highs in June 2024.
  
  
• Despite the exceptional performance of the "Magnificent Seven" (Apple, Amazon, Microsoft, Meta, Alphabet, Nvidia, and Tesla), we emphasize that investing based solely on hindsight can lead to risky decisions. While tempting, the high valuations of these stocks should be approached with caution.
  
  
• The largest institutional holders of the Magnificent Seven stocks include Vanguard, BlackRock, and State Street. The market's competitive nature drives these institutions to maintain their positions, creating a phenomenon similar to the Prisoner's Dilemma in game theory. This behavior can lead to crowded trades and elevated valuations.
  
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• Although coordinated selling and re-entry could benefit everyone, security laws and market competition prevent this, resulting in crowded trades in certain sectors. Index replicators like Vanguard also contribute to market crowding, similar to active managers. This crowding can occur in upward and downward trending markets, as participants may continue to sell undervalued assets during bear markets due to momentum and strategic pressures.

Implications and Recommendations

• While following market trends is often justified, Trajan Wealth advises caution against overconcentration in a narrow set of technology stocks.
  We recommend clients consider increasing their allocation to fixed-income assets and exploring investments in private equity, real estate, and infrastructure through limited private partnerships to mitigate unforeseen volatility and achieve uncorrelated returns.
  
  
• For portfolio review and assistance, contact our Portfolio Management Group at 1 (800) 799-3320.

Read the full June Market Review here.

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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.

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 locations across Arizona, Colorado, Florida, Georgia, Texas, Utah, and Illinois.

For more information or to schedule a complimentary consultation, visit https://trajanwealth.com or call 1-800-838-3079.

Disclaimer:
*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. Private equity may require accreditation.