Market Insight October 23, 2023

Our weekly market insight provides timely and accurate information on the financial landscape. We deliver tailored insights on different aspects of the market, economic indicators, and our investment strategy.

Treasuries Yielding More than Before

What is it?

The 10-Year U.S. Treasury bond yields hit 5.02% Monday morning, the highest yield since 2007.**

Data came out last week that showed a stronger than expected labor market* While that may be a good thing now it could have harsh implications for the future. With higher yields, the U.S. government will have to pay out a higher amount of money to those that buy the bonds. 

Why does it matter?

“When a Treasury is paying much more in interest, investors feel less need to pay high prices for Big Tech stocks, cryptocurrency or other investments that carry more risk.”**

While the economy has been strong, there are a lot of things making this difficult to sustain. Investors and consumers could be biased to optimism due to the easier conditions in the last few years. With bonds giving out favorable yields, we will see if the market prefers stock/ETF positions or the bonds moving forward. 

We are currently invested in some funds that own bonds and others that own stocks. The exact makeup of the portfolio will be specific to each account. As conditions change, we will adjust the tactical models as we see fit. 

Other articles we found interesting this week:

Chinese stocks have erased 4½ years of gains as foreign investors flee at record pace

BlackRock warns of US earnings stagnation, remains bullish on AI, Japan

Chevron to buy Hess Corp for $53 billion in all-stock deal

Current 401(k) portfolio

Our last 401(k) portfolio reallocation: 8/14/2023. 

Want more information?

The weekly market insight provides a window into the process we use in our investment management process. At Breakaway, we believe markets are always changing and require a nimble yet data-oriented approach. 

Our process attempts to identify trends and momentum in the financial markets. With that information, we align our clients’ portfolio accordingly in the hope to help our clients accomplish their life goals while attempting to lower the risk of a large drop in their portfolio.

Click here for more details about our investment management 

Sources:

*Chris Anstey, Thyagaraju Adinarayan and Jack Sidders. “The 5% Bond Market Means Pain Is Heading Everyone’s Way”. Yahoo Finance. 10/23/2023. https://finance.yahoo.com/news/5-bond-market-means-pain-040010668.html

**Stan Choe. “The yield on a 10-year Treasury reached 5% for the 1st time since 2007. Here’s why that matters”. Yahoo Finance. 10/23/2023. https://finance.yahoo.com/news/yield-10-treasury-reached-5-131529467.html

IMPORTANT DISCLOSURES: 

Educational use Only. The market update published by Breakaway Financial Group LLC (“Breakaway”) is intended to be educational in nature and is not intended to be a recommendation for any specific investment product, strategy, plan feature or other purposes. Accordingly, it should not be construed by any consumer and/or prospective client as solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation. 

Advertising and Marketing. Communications such as this are not impartial and are provided in connection with advertising and marketing. This material is not suggesting a specific course of action or any action at all. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, insurance, legal or tax professional that takes into account all of the particular facts and circumstances of an investor’s own situation. No person associated with Breakaway is a licensed attorney or tax professional and the information contained herein should not be considered tax or legal advice. 

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Important Information regarding Registration Breakaway Financial Group, LLC and/or Patrick Traverse offer investment advisory and financial planning services through Belpointe Asset Management, LLC, (“Belpointe”)500 Damonte Ranch, Parkway Building 700, Unit 700, Reno, NV 89521, an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC should not be construed to imply that the SEC has approved or endorsed qualifications or the services Belpointe offers, or that its personnel possess a particular level of skill, expertise or training. It is important to read disclosures pertaining to Belpointe Asset Management at this link https://belpointeasset.com/disclosure/.  Additional information about Belpointe and Patrick Traverse is available on the SEC’s website at www.adviserinfo.sec.gov.

Craig Stahlecker

Craig Stahlecker

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IMPORTANT DISCLOSURES:
The information provided is intended to be educational in nature and is not intended to be a recommendation for any specific business or tax strategy, plan feature or other purposes. Accordingly, it should not be construed by any consumer and/or prospective client as solicitation of services.

Communications such as this are not impartial and are provided in connection with advertising and marketing. This material is not suggesting a specific course of action or any action at all. Prior to making any business or tax planning decisions, an individual should seek individualized advice from a personal financial, tax, legal, or business consultant professional that takes into account all of the particular facts and circumstances of an individual’s own situation. No person associated with Breakaway Financial Group LLC is a licensed attorney, and the information contained herein should not be considered legal advice.