Trajan Wealth shares its October 2024 Market Review, authored by Chief Investment Officer Udayan Mitra, CFA. His insights are below; you can read the full review here.

October 2024 Market Review

Following the 2024 US General Election, US equities are up sharply. Meanwhile, bonds are declining – the 10-year US Treasury yield is up. Expectations of “pro-growth” policies – making the 2017 Tax Cut and Jobs Act permanent by a second Trump Administration is widely expected, as are rollbacks of many corporate regulations, particularly in the Financial Services industry.

Heading into the US General Elections, US Fixed Income returns fell sharply. And while the US equity markets stalled during the month, US equities as an asset class remained resilient year-to-date despite previous quarterly earnings.

Our recommendation for an individual client’s asset allocation is still based on multiple factors, including remaining earned income horizons, short and long-term liquidity needs, and risk tolerance levels (defined by the maximum drawdown our clients’ can absorb without having to liquidate assets). Time and disciplined investing have proven to be the most effective ally in wealth accumulation.

Market forces determine outcomes over the long term rather than political prerogatives. Thus, it is best to remain diversified to attain the best possible risk-adjusted investment outcomes.

As mentioned previously, we see the growing levels of our nation’s fiscal indebtedness as a source of potential systemic risk, especially since neither party at the 2024 election laid out credible plans to tackle the problem.

Implications and Recommendations
Make some precautionary adjustments to mitigate tail-risk in our clients’ strategic asset allocations for both the investment realm and fixed-income markets. Allocations to “real assets” such as Infrastructure and certain types of real estate leases backed by high-quality properties could be part of the overall asset allocation of qualifying clients.

We urge our clients to plan for higher taxes as we navigate past the next few years. The prospect of frozen or diminished levels of benefits from entitlement programs such as Social Security and Medicare should also be factored into saving/investing and spending habits.

We caution against any impulsive changes to our client’s investment portfolios based on the result of the 2024 election. US markets have proven remarkably resilient regardless of which party is in office. We recommend taking a long-term view of markets and maintaining a disciplined approach based on investment goals and risk tolerance rather than election outcomes.

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.