Welcome to the PlumTree Financial August Newsletter!

Each month we will provide you with the latest investment trends, fun facts/new tidbits, and the latest happenings with the PlumTree Financial team. We are incredibly grateful for our clients and friends, and we want to connect with you! Do you like what you see, or do you have a suggestion for a future topic… we love serving our clients, so do not hesitate to let us know.

August 2024

Capital Markets

The first half of 2024 featured surprisingly resilient economic growth and decelerating inflation.

While the economy has been resilient this year to date, there are signs of softening. Amongst other factors, real income levels have not kept pace with inflation and labor markets appear to weaken.

The 2023 stock market rally has continued into 2024. Large technology companies continue to lead, but we are seeing more on balance performance more recently.

It’s been a difficult few years for bonds. But since yields peaked last fall, bonds are back to generating attractive income at lower risk levels. The 'Agg' is flat for the year.

We expect the Federal Reserve will start to cut rates once the data convincingly demonstrates that broader spending is slowing, the labor market is softening, and inflation is contained. This will likely happen before the end of the year.

Be prepared for potential setbacks – and volatility – given geopolitical uncertainty and the upcoming presidential election.

Did You Know?

You may be thinking about your retirement, but when does a U.S. dollar bill finally get to retire?

The Federal Reserve issues $1, $2, $5, $10, $20, $50, and $100 denominations. Once a bill is returned to a Federal Reserve bank through a deposit, it is reviewed to determine its lifespan through proprietary processing equipment.

The smaller the bills, the lower their lifespan due to the frequency of use.

The chart below estimates the lifespan of a US dollar bill. Interestingly, the $2 bill first released in 1862 is still in production, but it does not have an estimated lifespan due to limited usage.

The Federal Reserve, "How long is the lifespan of U.S. paper money?” Board of Governors of the Federal Reserve System, March 09, 2020

Hanging out with us in the Plum Tree!

On March 1, 2014, PlumTree Financial was founded with a mission to "Help Our Clients Pursue Financial Independence". What you might not know is that the seeds for PlumTree Financial were planted eight years prior in 2006 during Greg's MBA trip to China. During the trip to China, Greg learned about the plum blossom and that it is a symbol of perseverance because the blossom's bloom during the cold winter.

The plum blossom also represents the marriage and inseparability of integrity and prosperity. This is a foundational philosophy for PlumTree Financial. The five petals represent longevity, prosperity, health, virtue and good living.

These are our five wishes for you!

Upcoming Events

10/02/24 - Avoiding Medicare Mistakes (webinar)

12pm - 1pm EST

This unique session will focus on the Medicare issues faced by business owners, large employers, small employers, and solo practitioners as they plan for retirement

Invite to follow with registration details

"Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort."

Franklin D. Roosevelt, 32nd U.S. President

Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

The opinions, statements and forecasts presented herein are general information only and are not intended to provide specific investment advice or recommendations for any individual. It does not take into account the specific investment objectives, tax and financial condition, or particular needs of any specific person. There is no assurance that the strategies or techniques discussed are suitable for all investors or will be successful. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.

Any forward-looking statements including the economic forecasts herein may not develop as predicted and are subject to change based on future market and other conditions. All performance referenced is historical and is no guarantee of future results.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor’s portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

Investing in stock includes numerous specific risks including the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market. Because of their narrow focus, sector investing will be subject to greater volatility than investing more broadly across many sectors and companies. Value investments can perform differently from the market as a whole. They can remain undervalued by the market for long periods of time. The prices of small and mid-cap stocks are generally more volatile than large cap stocks.

Bond yields are subject to change. Certain call or special redemption features may exist which could impact yield.

All information is believed to be from reliable sources; however, PlumTree Financial makes no representation as to its completeness or accuracy.