Monthly Note

October 3, 2023

Tough month, the S&P 500 has slipped about 6% from the recent highs we saw at the start of August.  Most of that seems to be driven by the Fed and its commitment to keep interest rates high until inflation comes more under control.  They are committed to this because the economic numbers like unemployment and the housing market continue to look shockingly strong.  Despite all that, the S&P 500 is still up about 12% year to date.

I’ve spoken a lot about the changing bond market and that situations will be changing over the coming 6-18 months.  With the most recent fed meeting I suspect the window is opening for those changes.  It will be extremely important to navigate the bond market correctly and is something I am watching very closely.  If interest rates are near the top and will stay higher longer, the bond market may be more attractive than it has been in years.

I will start reaching out to clients over 73 in October to discuss RMDs (Required Minimum Distributions).  If you’ve just turned 73, it will be new, but for most clients, this will be the same old process we do every year.

I hope everyone is enjoying the fall and don’t hesitate to reach out with any questions.  I release a video format of these monthly letters on the first Thursday of each month, which you can find on my YouTube channel.

Michael Canavan
LPL Financial Advisor
Canavan Wealth

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Stock investing includes risks, including fluctuating prices and loss of principal.