Are Your Investments Protected from a Stormy Market?

Dear Client,

The market has enjoyed a strong run, but at DurhamLoyal, we believe in staying vigilant and preparing for all possibilities. Recent economic indicators have us carefully assessing the potential for a significant MARKET CORRECTION. While we're not predicting a crash, we believe it's prudent to be aware of the potential headwinds.

Is your PORTFOLIO TRULY STORM-PROOF?

Let's examine seven key factors that could contribute to increased market volatility:

1. Tech and AI Overvaluation in the S&P 500: The S&P 500's performance has been heavily influenced by a relatively small number of high-flying technology and AI stocks. Many of these companies trade at exceptionally high price-to-earnings ratios, suggesting they may be overvalued and vulnerable to a sharp correction if market expectations aren't met.

2. Japan's Rising Interest Rates and the US Debt: Japan has been a major lender to the United States, meaning lower interest rates on US debt. However, with Japan now facing its own inflationary pressures and rising interest rates, their appetite for US debt at low rates may diminish, potentially driving up US borrowing costs and putting pressure on the market.

3. The Tariff Threat and Inflationary Pressures: The increasing rhetoric and implementation of tariffs on imported goods pose a significant risk. The markets are already reacting quite negatively. Tariffs can lead to higher prices for consumers and businesses, fueling inflation and potentially disrupting global trade, a negative for market sentiment.

4. The Strained American Consumer: Household debt is at record highs, with credit card balances soaring and savings rates dwindling. This reduced consumer spending power could lead to a slowdown in economic growth, negatively impacting corporate earnings and stock valuations.

5. Housing Market Slowdown: Existing home sales have slumped, reaching some of the lowest levels in over a decade. The housing market is a crucial indicator of overall economic health, and this weakness suggests broader economic vulnerability.

6. Inflation's Persistent Shadow: While inflation has cooled from its peak, it remains above the Federal Reserve's target. Recent data suggests the progress in lowering inflation has stopped. The Fed has been hesitant, at least publicly, to indicate their next move on interest rates.

7. Global Instability and Geopolitical Risks: Ongoing conflicts in Ukraine, the Middle East, and other regions create significant uncertainty. These conflicts can disrupt supply chains, impact energy prices, and generally increase investor anxiety, leading to market volatility.

DON'T WAIT FOR THE STORM TO HIT. GET A SECOND OPINION.

At DurhamLoyal, we understand that navigating these uncertain times can be daunting. We believe that a proactive approach to financial planning is essential, especially in the face of potential market turbulence.

We're offering a COMPLIMENTARY PORTFOLIO REVIEW ANDSECOND OPINION to help you position your portfolio for long term success and future retirement income.
Our experienced advisors will:

• Analyze your current asset allocation: We'll examine your portfolio's diversification and identify any potential vulnerabilities.

• Stress-test your portfolio: We'll model how your investments might perform under various market scenarios, including a significant correction.

• Provide personalized recommendations: We'll offer tailored strategies to help you mitigate risk and position your portfolio for long-term success, regardless of market conditions.

SCHEDULE YOUR NO- COST, NO-OBLIGATION CONSULTATION TODAY!

Don't let market uncertainty derail your financial plans. Let DurhamLoyal help you build a retirement future that can weather any storm.

Sincerely,

The DurhamLoyal Team