First Quarter Update From Horst & Graben
“History doesn’t repeat itself, but it often rhymes.” –Mark Twain
Happy spring! We hope that this note finds you and your families well. We’re here with positive news: After a great fourth quarter in 2023, we’re wrapping up a great first quarter in 2024.
Since 1926, only 14 years have beaten 2024 in terms of returns from stocks in Q1. This means that us current-day investors are doing better at the moment than the majority of investors have at this time of year for almost a century. Not only that, but historical data shows that Q1 trends tend to carry through the rest of the year. This chart from Blackrock lays it out:
For obvious reasons, we are optimistic about the markets in 2024. But that doesn’t mean it will all be smooth sailing: We do expect volatility this quarter and leading into the election. For one thing, we typically see some profit-taking after a big run-up. And while election years tend to be positive where stocks are concerned, there will be plenty of uncertainty along the way.
Rest assured, however, that we recently rebalanced accounts and feel good about your allocations at this point.
In other news, we have been powering through tax time like the rest of you. Here are a few items that we would love to remind you about:
Double-check your 401(k) or retirement savings accounts, as limits have increased. If you aim to max out your contributions, you’ll want to increase them to take advantage of the higher limits.
Taxes for year 2023 was a bit challenging due to Schwab’s purchase of TD Ameritrade. A lot of you had tax forms from both custodians. This should be a bit more streamlined for 2024 taxes, as you won’t have tax forms from two companies.
For a number of our clients who have after-tax investment accounts, we were able to take some capital losses in 2023 even though we had great investment performance. If you fall into this category, please send us your “loss carryforward worksheet” from your tax return so we can check if you have any losses we can use on your accounts when rebalancing.
Updates at Horst & Graben
Claire has now been with us for two months. As those of you who have chatted with her will be able to attest, Claire has brought greatly appreciated energy to our team. She is fitting in wonderfully and already feeling like a veteran on the team. Kudos to Claire.
We are happy to report we expect to move to our new building at the end of May. Our contractor is readying our suite for us, and Jamieson’s wife and our designer are picking out the flooring, wall coverings, paint colors, and furniture. We are very excited to be able to share our new space with you in the near future.
Horst & Graben now has a satellite office in The Dalles, Oregon. Mackenzie, who many of you have worked with, lives in The Dalles and works from the new office four days a week. She comes to our office in Lake Oswego one day a week.
We are coming up on the sixth anniversary of founding Horst & Graben! Over these years, we have more than doubled the size of the firm. We want to thank you for your support and let you know how much we value our relationship with you. We would not be here without you.
We mentioned something in our last newsletter that is worth repeating: The stock market does not care who is elected president, but just wants the matter to be settled. As we get closer to election day, don’t let the negativity and stress get the better of you when considering your finances. We all know that a well-developed financial plan and asset allocation are key to long-term success, so have confidence that your accounts are in good hands, no matter which way the political winds may blow.
We appreciate all of you.