December 2023
401(k) Allocation

401K Allocation

By: Jake Eggett

There are trades.

After a challenging three-month period, stocks and bonds have posted their best month of the year in November. Market optimism is driven by expectations that the Federal Reserve will halt rates, contributing to a smoother economic trajectory. Since July, the market has seen a notable reversal: the 10-year treasury rate dropped from nearly 5% to 4.3%, inflation is trending downward to 3.2%, and the economy is showing resilience amidst slower growth.

Given the current market trends, our stock and bond models have moved back to being fully invested. For stocks, we continue to favor U.S. large companies with a slight bent towards growth. For bonds, we have allocated back into high yield bonds while also maintaining our exposure to floating rate bank loans, attracted by their favorable yields.

As always, if you have any questions about how to rebalance your 401K, we encourage you to reach out to us!

MARKET UPDATE
FINANCIAL PLANNING

To download the December 2023 Newsletter: CLICK HERE

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