The Weekly Update 6/21/2024

Summer Solstice

Aahhh!  The one day of the year with the most sunlight, and my birthday!

The summer doldrums, as we refer to as the lazy days, are finally here!  This is the part of the year where trading volumes tend to dry up, which can result in more volatility, both up and down!

If you read The Seven Signs of a Changing Economy™ I wrote for June 2024 you know I am mostly positive on our economic outlook.  If you didn’t read it, (Read it here).

The positive points made are likely to continue, which will continue to surprise the naysayers, especially the ones in our business news.

But don’t expect much of a summer swoon!  Why?

• It is estimated that over $10 Trillion is in money markets, cash and demand deposits. The most ever recorded.  Money historically flows to where it has potentially better returns, sooner or later!
• Banks are not writing off losses, because there are very few
• New loan standards have been reduced, encouraging capital investments
• Fear of a market drop is very high
• Corporate earnings continue to grow and grow and grow!

These are just a few key points that very simply put, are not characteristics of a significant drop in the valuations of Corporate America.

At The WSG, we are well allocated for this and have our well thought out Investment Selection Matrix™, investment menu working in our collective WSG family’s asset allocations!

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful. Stock investing includes risks, including fluctuating prices and loss of principal.

Asset allocation does not ensure a profit or protect against a loss.  Value investments can perform differently from the market as a whole.  They can remain undervalued by the market for long periods of time.