Market Perspectives Q3 2024

With an ever-evolving macroeconomic environment, we wanted to share some key insights on our investment outlook. These insights are provided by Mission Wealth’s Chief Investment Officer Kieran Osborne and the investment team.

Navigating the New Market Landscape: Insights from Q3 2024

As we move through the third quarter of 2024, the market landscape presents both challenges and opportunities for investors. Mission Wealth’s latest market perspectives highlight key themes and actionable insights that can help guide our clients through these uncertain times.

Economic Resilience Amid Volatility

Despite some recent growth concerns, the U.S. economy remains resilient, with an expected expansion of 2.3% in 2024. While the possibility of a recession remains low, increased volatility is likely as we navigate ongoing geopolitical tensions and political uncertainty leading into November’s election. For our clients, this means staying the course while being prepared for a bumpier ride.

Stocks: A Mixed Outlook

Stocks have benefited from reduced inflation, strong consumer spending, and improved corporate earnings. However, recent volatility has reminded us that the market is not without risks. With high concentrations in a few large tech stocks driving much of the S&P 500’s performance, diversification is more critical than ever. Long-term returns are expected to moderate, making it essential for investors to have realistic expectations and a well-balanced portfolio.

The Case for Bonds and Alternatives

Bond yields today are much more attractive than in recent years, providing a strong basis for forward-looking returns, especially as the Federal Reserve begins cutting rates. At Mission Wealth, we have increased our exposure to bonds, particularly those yielding mid- to high-single digits. Additionally, alternative investments like private equity, direct credit, and real assets offer attractive risk-adjusted returns with limited correlation to public markets, making them a key component to many of our clients’ portfolios.

Strategic Portfolio Adjustments

A soft landing economic outcome would be supportive for the stock market. In anticipation of market shifts, we have strategically rebalanced portfolios by increasing allocations to value stocks and bonds, while trimming exposure to growth stocks. We have also bolstered our positions in alternative strategies, recognizing their potential to deliver consistent returns in a potentially lower-growth environment.

Download Our Market Perspectives & Look Forward

As we continue to monitor market developments, our focus remains on long-term fundamentals and disciplined investment strategies. By staying fully invested and avoiding the temptation to time the market, our clients are better positioned to achieve their financial goals, even in the face of short-term volatility.

At Mission Wealth, we are committed to guiding our clients through the complexities of today’s market with confidence and clarity. Our proactive approach ensures that our clients’ portfolios are not only resilient but also poised to capitalize on opportunities that arise from market fluctuations.

For a deeper understanding of these market insights and their impact on your investment portfolio, we invite you to explore the full Quarterly Market Perspectives report.