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Q3: 2024 Market Commentary

Market Overview

The third quarter of 2024 saw a significant broadening of market returns and a slight decline in interest rates, supporting diversified stock and bond portfolios. Value investing outperformed Growth, while small-cap, mid-cap, and international stocks surpassed their larger counterparts, a shift from previous market trends. While the S&P 500 still leads major indexes for the year, the recent expansion in market returns indicates valuations are gaining importance, capturing investor attention..

Model Portfolio Performance

The Altus model portfolios demonstrated solid performance, surpassing the S&P 500 when measured relative to similarly blended stock/bond benchmarks. As background, our model portfolio offerings cater to a wide range of risk appetites, from conservative models with minimal stock exposure to aggressive growth models, which can be fully invested in equities.

We strategically diversify most model portfolios across multiple asset classes, including stocks, bonds, and alternative investments (should clients meet suitability requirements).  We believe diversification is critical to generating attractive risk-adjusted returns because allocating across multiple asset classes with different historical return patterns can expand potential opportunities for reward while minimizing volatility and providing protection during market downturns. 

Through the end of 3Q: 2024, our model portfolios’ performance has aligned with broader market trends and our internal expectations. Given equities have outperformed bonds this year, now is an opportune time to reassess your financial plan and consider rebalancing or reallocating your investments to align with your current risk tolerance and broader goals. Additionally, implementing tax loss harvesting strategies could benefit some clients as the year closes.

Outlook

Looking ahead to the end of 2024, the economic landscape presents challenges because of inflationary pressures, employment considerations, and the complexities of an election year. Proposed political spending plans may stimulate economic activity but pose risks such as increased inflation, which could affect the Federal Reserve’s policy decisions. Against this evolving backdrop, evaluating whether a client’s risk tolerance and investment portfolio align with long-term objectives is critical.  If you haven’t met with your advisor at Altus recently, year-end is the perfect time to have these meaningful conversations.  

At Altus, we are committed to proactive and prudent wealth management, prioritizing long-term asset allocation strategies over chasing short-term gains. As mentioned above, we encourage you to engage regularly with your advisor—to evaluate if your portfolio is aligned with your risk tolerance and address any life changes that might necessitate adjustments to your overall financial plan or investment strategy.

Thank you for trusting Altus to guide you on your financial journey and manage your wealth.  We remain dedicated to investing your assets with the utmost care and expertise while providing excellent client service.

Past performance is no guarantee of future results, and the opinions presented cannot be viewed as an indicator of future performance.

Investing involves risk, including loss of principal.

Any discussion of performance or models is for illustrative purposes only and to explain asset allocation hypothetically.  This is not meant to be a complete list of all the model portfolios that Altus Wealth Management manages or offers.  

All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security.

Clients should refer to their custodial statements for performance reporting, as this commentary is meant to be general, and performance may vary between clients in the same model for a variety of reasons, including timing of investments, cash withdrawals, and account size.

Indexes are unmanaged and cannot be invested in directly. (102-LPL)

The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. (102-LPL)

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. (92-LPL)

Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. (135-LPL)

Asset allocation does not ensure a profit or protect against a loss. (34-LPL)

Election Season: A Time for Ballots, Not Drastic Portfolio Changes

Prepare for the upcoming election season with our insightful report, “Election Season: A Time for Ballots, Not Drastic Portfolio Changes.”  As the political climate intensifies, this report delves into historical market trends following presidential elections and provides an analysis of the current candidates’ economic policies. Access the full report for research insights and informative charts that will help you confidently navigate this year’s election.  Additionally, you’ll learn:

  • How market trends typically unfold after elections, regardless of the winning party.
  • Why staying committed to your goals-based investment plan is prudent amidst election-induced volatility.
  • The potential economic impacts of policy positions from both presidential candidates.
  • Historical performance data of the S&P 500 in post-election periods, supported by comprehensive graphs and analysis.

Please click the link below to download or read the full PDF of this report.