May 2024 Update

Ashley Nichols - May 09, 2024
This month, we go over April's market conditions - the market is still in a bull condition... Ashley's Millennial Minute takes a more fun turn for the summer... And, of course, we share our Portfolio Performance numbers...

Money is a Tool. It's something that supports your life!

This month, we go over April's market conditions - the market is still in a bull condition, and the bears need to create follow-through selling to increase the odds of a pullback phase lasting at least 2 - 3 months. For now, the market continues to be extremely overpriced with very high P/E ratios. The question continues to be: How much longer can this go for, before it comes crashing down?

You can read Stephen's Technical Comments further down in the blog.


 

Stephen also shares his charts and pictures of interest - and this one here is currently our favorite! A very important reminder that we cannot control everything around us and to focus on what we can control in our lives.

 

 

 

 

 

 

 

 

 

Ashley's Millennial Minute takes a more fun turn for the summer - follow along as she tries her hand at gardening to lower her grocery costs this year!

And, of course, we share our Portfolio Performance numbers, and some information about the Federal Budget for 2024.

 

Our Portfolio

We hope you've been listening and enjoying our monthly Financial 50s - please stay tuned for a new episode this month!

 

Transactions

No trades were conducted in the accounts this month.

As of April 30, 2024, we were around 9% in cash, 18% in bonds and 73% in equity.

 

Returns on our 60/40, 70/30 & 80/20 Portfolios - Before Fees:

 

Interesting Charts

 

Technical Comments

https://www.brookstradingcourse.com/price-action-trading-blog/

  • The March monthly S&P 500 candle was a bear bar closing below March’s low with a prominent tail below.
  • Last month,  we said that until the bears can create a strong sell signal bar, odds continue to favor the market to trade sideways to up.
  • April’s candlestick formed a sell signal bar following 5 months of strong rally.
  • The bulls got a strong rally starting in October in the form of a 6-bar bull microchannel.
  • Sometimes, there may be buyers below the first pullback following such a strong bull microchannel.
  • If there is a deeper pullback, the bulls want another strong leg up completing the wedge pattern with the first two legs being July 27 and    March 21.
  • They want any pullback to be sideways and shallow (filled with weak bear bars, bull bars, doji(s) and overlapping candlesticks).
  • They want the pullback to form a higher low and the 20-month EMA or the bull trend line to act as support.
  • The bears want a failed breakout above the all-time high, a reversal from a higher high major trend reversal and a large wedge pattern (Dec 2, July 27, and March 21).
  • They got a sell signal bar in April. They will need to create follow-through selling to increase the odds of testing the 20-month EMA.
  • Since April was a bear bar closing in its lower half, it is a sell signal bar for May.
  • The market remains Always In Long and the move up from October is in a 6-bar bull microchannel.
  • There may be buyers below the first pullback from such a strong bull microchannel (perhaps holding the market up in the first half of May).
  • The rally has lasted a long time and is slightly climactic. April was the first sign of a possible pullback phase.
  • For now, the bears need to create follow-through selling to increase the odds of the pullback phase lasting at least 2-3 months.
  • Traders will see if the bears can get a follow-through bear bar, or will the market reverse up retesting the prior high (Mar 21) instead.

Millennial Minute

Who else is just appalled whenever they walk into the grocery stores and see the rising food prices? In the words of my fellow millennials: "OMG these prices are legit insane!"

I'm not alone in this sentiment - the cashiers at the stores almost cringe whenever the totals come up on the screens, and when they try to push that ridiculous rewards card on me to save $10 on every $1,000 I spend, I decline solely on the fact that I should HAVE to have another card in my wallet/on my phone to save me what is a pitiful amount of money when you compare it to the amount you have to spend.

I will gladly die on this hill - so don't come at me.

Lots of millennials and gen z are getting increasingly frustrated that something we need in order to survive is becoming increasingly harder to afford.

To combat this, the trend of "Homesteading" and "Urban Gardens" is increasing in popularity among my generation and younger - and I think this is a trend I can hop onto!


Click here to read my article on Homesteading on the Rise - and to keep track of my own Urban Gardening journey!

 

Planning

The 2024 Federal Budget Review

The recent 2024 Federal Budget proposed several important new measures impacting

individuals and business owners, most notably a change in the capital gains

inclusion rate (from 1/2 to 2/3 effective June 25, 2024) for all capital gains realized by

corporations and trusts, and for individuals on annual capital gains exceeding $250,000.

 

Click here to read more!

 

And now for something we think you'll really like!

We want to remind our clients that our team is so much more than investing. We have an extended team of wealth professionals that we utilize to help you get a holistic management style of your wealth. While we can't always be the "one stop shop" for everyone, we strive to offer the best advice from a multitude of sources at our disposal. 

If you have questions about tax planning, retirement planning, estates and trusts, even mortgages and lending products, we have the person who can answer all of your questions! 

 

Please never hesitate to reach out to us with any questions or concerns. No question is too silly, and no topic is off limits.