Broker Check

Mosaic Asset Partners - That's A Wrap On The First Quarter Of 2024

March 28, 2024

Happy Thursday and Happy Easter! This letter is coming a day earlier than normal as our financial markets and our office will be closed tomorrow. It’s hard to believe that the first quarter of the year is nearly in the books already. I think we have all been pleasantly surprised by the continued strength in our markets and our economic data overall. Of course, the skeptic in me has to wonder how far this current run can go, but with the Fed holding its path steady and the economy still humming along, the answer to that question remains elusive. Interestingly enough, the prices of gold, crypto currencies and even cocoa are also rising to all-time high levels. On top of that, there remains a record amount of cash sitting on the sidelines waiting for a chance to be invested. So, not only are the “bulls” staying in the ring, but even the “bears” (think defensive holdings like gold and cash) are holding steady. This makes for some interesting times for sure.

So, what gives? I think that in this environment, no news is good news. When I say no news, I mean big policy changes by our government or drastic moves by the Federal Reserve. Investors have been more conditioned to volatility in recent years and have generally adjusted not only their thinking but also their portfolios to account for this. As interest rates moved higher, we were finally rewarded when holding cash and liquid instruments like treasuries. Bonds, which were in the doldrums a few short years ago, finally are paying a decent and respectable yield. Diversification is now being rewarded again after being left behind for a few years. In recent memory it was mostly the stock/equity markets that paid off but that has always come with more risk. As our current, aging population has learned, holding some cash, especially when you can earn a respectable interest rate is okay. Sure, there can be some opportunity cost in that, but peace of mind and sleeping well at night holds a lot of merit for many. I suspect as we head into the spring and summer months, more volatility will likely creep back in. For many, this will present opportunities and when you are holding some liquid investments you can take advantage of that. That is a good thing and one of the reasons we will often carve out some cash to the side in our portfolios.  

The technology and A.I. craze have been a major market mover to start the year. I really don’t see this slowing down much in the near-term. As we move through the Spring months, we will continue to look for signs as to the health and wealth of our economy and its various participants. We continue to monitor and adjust our portfolio holdings as needed to account for these various components. As we all know, this is far from a perfect science, but staying focused on the short and long-term goals remains ever important. It’s hard to ignore the “noise” sometimes and there will undoubtedly be more coming as the election process heats up further. It’s all to be expected, for better or worse. For now, we will simply be keeping our heads down and grinding away. Lastly, our hearts go out to the families impacted by the bridge disaster here in Baltimore. As the Easter holiday approaches it serves as a reminder for a time of reflection and gratitude for the sacrifices made by many.

Enjoy your holiday weekend.

https://www.cnbc.com/2024/03/26/cocoa-prices-are-soaring-to-record-levels-what-it-means-for-consumers.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail

https://www.cnbc.com/2024/03/26/logistics-companies-scramble-after-bridge-collapse-closes-port-of-baltimore.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail

https://www.cnbc.com/2024/03/28/time-to-hedge-for-a-market-decline-pros-weigh-in-with-strategies.html

Christopher E. Wasson, CFP®

President

Mosaic Asset Partners, LLC

1122 Kenilworth Drive, Suite 310

Towson, MD  21204

410.821.0089         fax 410.821.5993

MosaicAssetPartners.com  

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Mosaic Asset Partners, LLC is not affiliated with Kestra IS or Kestra AS.  Investor Disclosures: https://www.kestrafinancial.com/disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.