April 2024 Newsletter

Dear Clients and Friends,

We hope you all are enjoying the signs of spring and enjoyed Easter weekend.

The first quarter of 2024 was very positive for the stock market with new highs being posted across most major indices. This resulted in the best first quarter returns of the year since 2019.

Stocks:

S&P 500: 10%

Nasdaq: 9.5%

Russell 2000: 4%

Bonds have been trading flat to down mostly with interest rate cuts being pushed back to the summer timeframe or later, depending on what economic data compels the Federal Reserve to do. 

Bonds:

Aggregate Bond Index:

-2%

Short Term Index:

-1%

Long Term Treasuries:

-6%

In spite of this we still believe there is great opportunity in these markets and believe the right place to be is somewhere in the middle of the yield curve in high quality areas. Our bond portfolios are currently overweighted in this area, and when rates to do fall, we should see some exciting price action here. 

On the alternative investment front, we are also optimistic about the continued use of structured income notes that have been paying between 10-14% and will continue to take advantage of these especially when more volatility returns to the stock indices. Private equity and private credit also remain a strong focus alongside our public stock/bond portfolios.

More Tax Tips

With the tax filing deadline right around the corner, we wanted to send out a tip specifically for our Colorado based clients. Many of you are undoubtedly familiar with 529 College Savings accounts where investments grow tax free as long as they are used for education expenses (in CO higher education only). What many folks are not aware of is the First Step program where any child born in Colorado after January 1st of 2020 is eligible for a matching $500 donation into their 529 account for a period of 5 years for a total value of $2,500.

To qualify, the account must be opened and a $500 deposit made into the 529 for the child born in CO. This deposit can come from grandparents, friends, parents, etc.. and if that individual is also a CO resident, they can take a state tax deduction for the year the gift was made. For each consecutive 4 years, a new deposit of $500 will receive an equal match each year.  

More information on this can be found in the link above and we are happy to help with any questions around this or other tax strategies you might be thinking about. 

We look forward to reviewing your portfolios and financial plans soon and wish you all the best,

Stephen, Dan, and Chris

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