Dear Client, Partner, Prospective Client,
It has been an interesting and challenging year from an investment strategy standpoint. The S&P 500 has roared and if you haven’t owned that index or owned the Mega caps including: AMZN, NVDA, AAPL, META, MSFT you are trailing the market and disappointed you didn’t get in on that dynamic action. That will subside though and there’s a good chance it happens in the first two quarters of 2025. The Federal Reserve will dictate the pace of some of these slowdowns, pauses and corrections based on how fast they continue to drop rates. The media seems to salivate on their every word that relates to interest rate adjustments.
The CPI (ConsumerPrice Index) dropped to 2.4% in September, which was slightly better than August at 2.4%. This is the smallest increase since February of 2021. The Unemployment rate dropped slightly from 4.2% to 4.1% in September or just barely but moving in the right direction. Hopefully, the job market continues to stay strong and employers and small businesses can gainfully employ hard-working people.
The next President’s tax plan is of major concern to many Americans. Will there be a flat tax? Will the capital gains rate be raised? Should people be taxed on net investment income? Should corporations pay more taxes, some think billionaires should be. Yet corporations and billionaires put people to work. No matter where you stand on these and many other issues, tax reform is a hot topic. It is hard for the author to see much changing here since it must pass through Congress to happen, and they have a hard time agreeing on much.
Three weeks from Election Day 2024. Make sure you get out to vote! You can’t complain if you don’t do your part. Will it be Kamala or Trump again? We will find out soon and then their policy implementations will determine the next course of the country for the next four years. Election years are usually a strong time for the markets,’ and we have a lot of steam and momentum driving the bus currently. Will it continue or reverse itself based on the Presidential outcome? Time will tell and we look forward to the future.
Sincerely,
J.B. L’Esperance, ChFC
If you have questions about our strategies or would like to open an account with Barking Sands Capital, please give us a call at 952.500.8854 or 248.687.1400 or email us at jb@barkingsandscapital.com.
**MN Clients-Please note new address as we have moved back to the Carlson Towers in Minnetonka due to issues with neighbor parking near our entrance and lunch traffic at The Red Rooster. (601 Carlson Parkway, Ste. 1050, Minnetonka, MN 55305)