A solid earnings season drove investor optimism and equities rallied in May, with tech, small caps, and REITs as top performers. However, economic data continues to be met with mixed emotions as positive data could mean rates stay higher for longer but negative data brings back fear of a recession. Weaker consumer demand moved yields lower and bonds had their best month of the year. Softening retail spending could fuel lower rates in the back half of 2024.

Selecting a trustee is a critical decision in the estate and wealth transfer planning process. People often ask a family member or trusted advisor to serve as trustee. This note outlines factors to consider when selecting a trustee, and when a corporate trustee might be the appropriate choice.

We maintain our tactical positioning this quarter. We weigh a positive economic environment, as indicated by our Market Cycle Dashboards, against stretched equity valuations, as highlighted in our forward-looking Capital Market Assumptions and our Stress Test Scenario Analysis. We encourage a review of portfolio allocations and rebalancing needs after a robust first quarter for equities and a weak quarter for fixed income. Look for opportunities in areas that have not participated as strongly. Be prepared to take advantage of increasing volatility, including divergence in valuations between public and private markets. Despite the recent rally in public markets, private market purchase multiples continue to reset to lower levels.

This is a summary. Please contact your client advisor for the full Tactical Allocation Viewpoints report.