Doug English with ACT Advisors brings you your April 2024 financial update. As we reflect on March, it is a pleasure to report that it was another excellent month for your accounts, with both stocks and bonds delivering positive returns. Let’s dive into the details and explore what these developments mean for your financial strategy.
March was a strong month for the markets, with stocks rising between 2% and 2.5%. Bonds also experienced gains, thanks to a decrease in interest rates, leading to a 60-basis point increase in bond returns. As a result, our more aggressive clients saw returns closer to that 2.5% mark, while those with a more conservative approach benefited from the 60-basis point increase.
Doug English shares, “We’ve got some wonderful year-to-date numbers, with the market approaching an all-time high. While it’s natural to wonder if a pullback is on the horizon, it’s important to remember that market pullbacks are a healthy and normal part of market behavior.”
Historically, markets experience about three 10% pullbacks each year. While we haven’t seen one yet, it wouldn’t surprise us if a pullback occurred soon. This type of market correction is a normal and healthy process, allowing the market to reset before continuing its upward trajectory.
If you are planning to spend some money this year, now might be an opportune time to take some profits out of your account. Whether it’s for a vacation, a new vehicle, or any other significant purchase, using your investment gains to fund these expenses can be a smart move. As Doug English suggests, “We love to see your account grow, you take some money out and spend it, and have the account replace that money. I know that makes us both very happy.”
ACT Advisors takes pride in its unique approach to stock and bond rotations, which are thoroughly researched and tailored to your needs. These strategies are developed in-house and are not available anywhere else.
In March, we held mid-cap stocks in our stock rotation, which performed exceptionally well, outpacing the S&P 500 and the broader stock market. However, as market momentum shifts, so too does our strategy. For April, we will be replacing the mid-caps with the S&P 500, which has caught up in performance due to its longer-term data.
On the bond side, our rotation strategy continues to evolve. In March, we held preferred stocks, which performed exceptionally well. The other bond categories we track are closely ranked, with only fractional differences between them. As a result, the decision for the bond rotation will be made on a “game day” basis. Wes Johnson, co-founder of ACT Advisors, will make the final call on this rotation first thing tomorrow morning.
As we move into April, it’s also important to focus on tax planning. With tax season upon us, please ensure that your IRA contributions are made promptly. Sometimes, waiting until the last minute can result in complications, as custodians may not guarantee processing in time for the tax year. Doug English urges, “Please don’t let that be a situation that we’re concerned about for you. Contact us today to get those contributions done.”
As spring arrives and the weather warms up, it’s gratifying to see your accounts doing well. We appreciate your patience during challenging times, which have led to these positive results. At ACT Advisors, we are committed to working hard for you and helping you achieve your financial goals.
Doug English, a seasoned financial advisor and co-founder of ACT Advisors, brings years of expertise and insight to his clients. ACT Advisors, located in Asheville, specializes in providing personalized financial planning services to help clients achieve their long-term financial goals. Known for their client-focused approach and innovative strategies, ACT Advisors is dedicated to guiding you through every step of your financial journey.