The Lowry Letter®

Week of 5/25/2024

The Dow, S&P 500, and Nasdaq have all reached new highs within the past week. As of the writing of this week’s Letter, they have pulled back from those levels. Reason to panic? Absolutely not. This is completely normal behavior.

In fact, we can expect a more significant pullback at some point this year. This is also normal, and may come in response to some economic indicator, like inflation, due to a geopolitical issue (Ukraine or Israel or something else), or due to pre (or post) election jitters. As always, we sing the same old song- short term variability is not a good reason to try and time the market.

Please remember, Monday is Memorial Day - our office and the markets will be closed in observance of the holiday. We hope that your weekend is peaceful and that you are able to take time to remember the sacrifice of those who have paid the greatest price to protect our country.

Tesla’s safety record for “full self-driving” is very good and getting better. Have you used it? What are your thoughts?

This is some good advice about having money conversations with your kids, early and often.

Marcin is a young percussive guitarist and you’ll enjoy this rendition of “Ain’t No Sunshine.”.

According to Wallethub, the average total tax burden for individual states is 8.35%, when you combine property, income, sales, and excises taxes.

We love to cook, and prepping a large amount of food at one time can be a very useful habit. This is a helpful reminder about how long meat remains safe (and good-tasting) in the freezer.

Ask the Joes® (and Cale) considers something we are asked about frequently, related to the performance of the S&P 500 vs more diversified asset models. Traditionally, the S&P 500 index has been considered a diversified holding, but as Chris Fasciano explains, it is not the best representation of the entire stock market.

In recent years, the 10 largest companies in the S&P 500 have come to represent a larger percentage of the index than ever, and the largest companies overall (the megacaps) constitute a majority. Mid-size and small companies are less well-represented in the market as a whole (as measured by size).

So, it has been challenging for investors to judge how diversified they should be. We continue to see great value in it, and this is something we often consider when we evaluate the models we use in your portfolios.*

*Diversification does not assure a profit or protect against loss in declining markets. There is no guarantee that any objective or goal will be achieved.

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Advisory Services offered through Lowry Financial Advisors, Inc., a Registered Investment Adviser. Securities and additional advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Advisory services offered through Lowry Financial Advisors, Inc, are separate and unrelated to Commonwealth. Lowry Financial Advisors, Inc. is located at 12921 SW 1st Rd, Suite 215, Tioga, FL 32669. 352-333-7990

Lowry Financial Advisors is the only advisory firm that helps its clients reach their goals through The Achieving Simplicity® Experience™, providing clarity and confidence in their personal and financial lives.