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January 20, 2024 Market Update

The stock market rose 0.65% for the trading week, based on the Vanguard Total Stock Market Index Fund ETF.  Meanwhile the SPY 500 closed on Friday at an all-time high.  The rally was supported by upbeat economic data released during the week, including stronger-than-expected retail spending, a drop in jobless claims to the lowest level since 2022, and a sharp increase in consumer sentiment.

The positive economic data had the opposite effect on the bond market, which turned cautious about the outlook for cuts in interest rates by the Federal Reserve.  The reasoning is that if the economy stays resilient in 2024, as it currently appears it will, then the Federal Reserve is less likely to reduce interest rates as quickly as some have been expecting. 

I am very pleased to announce that both of The Brinsmere Funds, which are managed by The Milwaukee Company, began trading on The New York Stock exchange this past Tuesday.

The Brinsmere Fund – Growth ETF (symbol TBFG) looks to generate superior returns while managing risk.  The Brinsmere Fund – Conservative ETF (symbol TBFC) seeks long-term capital appreciation in a manner that is consistent with capital preservation.

 The Brinsmere Funds are managed using two strategies developed by The Milwaukee Company.  Those strategies, which are our Systematic Market Beta Strategy (“SMB”) and our Classic Asset Allocation Revisited Strategy (“CAAR”).  We’ve used both strategies for several years to manage securities held in our clients’ brokerage accounts.  

 The use of an ETF to implement these strategies provides three important advantages to ETF investors.  

  •  First, in most cases the ETFs can implement strategy-directed trades without the immediate recognition of capital gain taxes.  
  •  Second, the delayed recognition of capital gains allows increased trading activity, and thereby increases the expected returns for the strategies.
  •  Third, it allows investors who are not clients of The Milwaukee Company to utilize these strategies by investing in the ETFs through a standard brokerage account.

 Getting these funds off the ground involved nearly two years of very hard work by The Milwaukee Company’s staff.  Thank you, Laura, Shrey, Seth, Jake, Jim, Andrea, and Michael.  This accomplishment would not have been possible without your commitment and dedication.  Congratulations!

 That’s all for now.  Have a great weekend and invest wisely my friends.