MLD Market Update – December 2024

Join Chad Larson, Senior Portfolio Manager, as he gives his thoughts on December’s market. In this episode, Chad discusses the impact of the recent U.S. elections on market performance, including the so-called “Trump bump” and how it has influenced risk assets like equities and credit spreads.

The Trump Bump: Analyzing Market Reactions Post-Election

00:00:00 – Introduction to MLD Money Matters
00:00:18 – Market Performance Recap
00:02:02 – The Trump Bump and Market Reactions
00:03:15 – First Quarter Results of the Alternate Private Income Portfolio
00:04:30 – Future Market Predictions
00:06:20 – Investment Strategies for Current Market Conditions
00:07:51 – Risk Management in Investing
00:09:44 – Impact of Global Events on Markets
00:10:58 – Canadian Dollar Weakness and Economic Challenges
00:13:47 – Long-Term Investment Insights
00:15:02 – Emerging Trends in Healthcare: Peptide Therapies
00:17:44 – Conclusion and Future Outlook

Welcome to another episode of MLD Money Matters! I’m your host, Chad Larson, Senior Portfolio Manager at MLD Wealth. In this episode, we dive deep into the latest market updates, reflecting on the key elements that shaped the market last month and taking a closer look at the first quarter results of our Alternate Private Income Portfolio.

We kick off the episode with a recap of market performance, highlighting the so-called “Trump bump” following the recent election results. The market reacted positively to the Republican Party’s victory, with risk assets like credit spreads and equities rallying. I discuss how the clarity from central banks and the Bank of Canada’s rate-cutting cycle have influenced market dynamics, despite some initial volatility in traditional fixed income and equity returns.

I’m particularly excited to share the impressive performance of our Alternate Private Income Portfolio, which returned an annualized 12.44% net of fees in its first quarter. This portfolio, designed exclusively for MLD clients, aims to generate attractive long-term risk-adjusted returns through a diversified mix of alternative investments, including private credit, real assets, private equity, and hedge funds.

As we look ahead to the next quarter, I outline several factors that will likely influence market dynamics, including the Federal Reserve’s stance on interest rates and the global economic landscape. I emphasize the importance of strategic positioning and diversification in navigating these uncertainties, particularly through alternative investing.

We also delve into the impact of global events on market dynamics, discussing how geopolitical tensions and economic policies can create both challenges and opportunities. I share insights on the Canadian dollar’s recent weakness and the implications of the current economic environment in Canada, including high taxes and a challenging housing market.

Towards the end of the episode, I explore the emerging use of peptide therapies in healthcare, discussing their potential impact on longevity and the healthcare industry. This topic has gained traction following the recent election, and I believe it represents a significant investment opportunity as the market for peptide therapies is projected to exceed $100 billion by 2033.

In summary, while global events can create market noise, a well-diversified strategy can help navigate uncertainties and achieve long-term investment goals. I appreciate the opportunity to connect with you all, especially as we approach the holiday season. Thank you for tuning in, and I look forward to sharing more insights in future episodes!