My Thoughts on The Market: August 5, 2024

Matt Johnson, CFA®

Last month was non-eventful in the markets, we witnessed a decline in the 10-Year Treasury yield back to the levels of last year.

The first few trading days of August have been extremely volatile. Bond yields declined and the equity markets are falling as well. This appears to have been started by the declining employment numbers from the jobs report last week. With all the “storylines” it is hard to pinpoint exactly why we are experiencing the current selloff. There are multiple wars going on, our upcoming election, and a slowdown in China could play a part in the volatility in the markets.

I realize moments like this can cause concern and want to reassure you that we invest your portfolio for the long-term and moments in the market like this one become a brief blip over time. We invest the portfolios we manage in strong companies with exceptional cash flows which help in volatile markets like this one.

We have a fair amount of cash on hand and will be able to put this money to work at lower prices. The portfolios are diversified meaning not all stocks are technology (the poorest performing equities over the last few days). Through our process we have trimmed/sold” companies that have exceeded our price targets or showed declining fundamentals.

Should you have any questions regarding your personal situation or portfolio(s), please contact us and we will be happy to discuss your situation with you directly.

Regards,

Matt Johnson, CFA®

Sage Capital Advisors, LLC is a Securities and Exchange Registered Investment Advisor. Sage Capital Advisors is headquartered in Sioux Falls, South Dakota. Advisory services are only offered to clients or prospective clients where representatives of Sage Capital Advisors are properly licensed or exempt from licensure. This market commentary is solely for informational purposes and should not be construed as investment advice, it is only intended to provide education about the financial industry. Historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of investment management fees, or the impact of taxes, all of which would have the effect of decreasing historical performance results. Indices are unmanaged and cannot be invested in directly. It should not be assumed that your account holdings correspond directly to any comparative indices. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered unless a client service agreement is in place.