Pradel Financial Group

✦ What Is Juneteenth? ✦

Most people are familiar with the celebration and history behind Independence Day.

But while the United States became free in 1776, enslaved Black people weren’t freed at that time.

Juneteenth commemorates African American freedom and emphasizes education and achievement. In cities across the country, people of all races, nationalities and religions are joining hands to truthfully acknowledge a period in our history that shaped and continues to influence our society.

Here is a link for events in Seattle and a simple search will find events in other cities:
https://www.seattlemet.com/arts-and-culture/seattle-juneteenth-events-parties-art-exhibits-celebrations

We are honored to be nominated again for The Seattle Times Best in the PNW Awards!

Check out all the great businesses and organizations included in the various categories. You’ll find Pradel Financial Group under Financial --> in the Wealth Management section.

A few points from the markets and economy last week:

✦ The S&P 500 and the NASDAQ recorded their seventh positive week out of the past eight, with both indexes pushing their record levels higher. The NASDAQ posted a 3.3% total return while the S&P 500 added 1.6%; the Dow was an outlier with a 0.5% decline.

✦ A monthly inflation reading only slightly beat expectations, but it was enough to help fuel stock market gains on Wednesday and lift prospects for a possible interest-rate cut in coming months. The Consumer Price Index recorded no change in May relative to the previous month; on a 12-month basis, May’s inflation figure was 3.3%, better than economists’ forecasts for 3.4%.

✦ For its seventh meeting in a row, the U.S. Federal Reserve on Wednesday kept its benchmark interest rate unchanged. While Chair Jerome Powell said a monthly inflation report released earlier in the day was better than expected, the latest Fed projections suggest the possibility of just one interest-rate cut this year, down from the three cuts that the Fed had projected as recently as March.

✦ The World Bank lifted its full-year 2024 outlook for global economic growth, owing in part to recent improvement in the U.S. outlook. The bank now expects global GDP to post a 2.6% annual growth rate, up from a January forecast of 2.4%. U.S. growth is forecast at 2.5%—nearly a full percentage point higher than the bank had predicted five months ago.

Today marks the 80th anniversary of D-Day, a day of immense courage and sacrifice. We honor the bravery and heroism of those who fought and gave their lives. Their legacy continues to inspire us.
Thank you to the greatest generation!

If you want to see some inspiring and impressive videos and posts, follow Walk Among Heroes.

Congratulations 2024 graduates and best wishes for your next adventure! 🎓

University of Washington
Seattle University
Seattle Public Schools
WSU Pullman
Western Washington University

A quick market recap from last week and a look ahead:

💰 The major U.S. stock indexes all declined around 0.5% to 1.0%, with the S&P 500 and NASDAQ both snapping a string of five consecutive weekly gains that had lifted the indexes to record highs. The Dow posted its second negative week in a row. Yet the monthly numbers for May were positive, with the S&P 500 climbing nearly 5%, rebounding from an April decline and posting its sixth positive month out of the past seven. The NASDAQ led with a gain of almost 7%; the Dow added more than 2%, as a late-month decline sent that index down from its first-ever 40,000-point closing level reached on May 17.

💰 Yet in other news, first-quarter U.S. economic growth wasn’t as strong as initially estimated. A downward adjustment of consumer spending data led to a revised annualized GDP figure of 1.3% versus an initial estimate of 1.6%. The growth rate was well below the 3.4% figure recorded in last year’s fourth quarter.

💰 The U.S. Federal Reserve’s preferred gauge for tracking inflation was little changed from the previous month and remained well above policymakers’ 2.0% long-term target rate. The Personal Consumption Expenditures Price Index rose at a 2.7% annual rate in April―the same as in March. Excluding food and energy prices, the rate has been stuck at 2.8% for three months in a row. Now, if only we would see this impacting our grocery and gas bills.

💰 And this week, the monthly labor market report due out on Friday will show whether the recent trend of moderating jobs growth extended into May. In April, the economy generated 175,000 jobs, down from 315,000 in March. The unemployment rate rose slightly to 3.9% and wage growth slowed.

Love is love! Happy Pride Month! 🏳️‍🌈

If you live in Seattle – follow so you don’t miss any events happening in the city. The Pride Parade will be June 30th.

A few points from the world of financial planning and finance:

☑️ It was a week of starkly different results for the major U.S. stock indexes, with the Dow down more than 2%, the NASDAQ up more than 1%, and the S&P 500 posting a tiny gain. The Dow snapped a string of five positive weeks in a row and fell more than 900 points below the record-high 40,000-point threshold that it had breached the previous week.

☑️ The NASDAQ’s weekly outperformance relative to its peers was driven in part by another strong week for information technology stocks, the broad market’s top weekly performer at the sector level with a return of 3.4%. The tech sector is coming off a solid earnings season in which its earnings growth rate ranked third highest among the 11 S&P 500 sectors.

☑️ This Thursday’s scheduled release of an updated U.S. GDP estimate will be among the most closely watched economic reports of the holiday-shortened week. An initial estimate released in late April indicated that GDP expanded at an annual rate of 1.6% in the first quarter, down from a 3.4% figure in last year’s fourth quarter.

Every day, especially today – sacrifices remembered and heroes honored. 🇺🇸

“As we express our gratitude, we must never forget that the highest appreciation is not to utter the words, but to live by them” – John F. Kennedy

Your Microsoft Stock Awards vest soon, now what?

➡️ First off, do you know how Stock Awards work?

➡️ Are you confused as to why the net number of shares doesn't match what you thought vested?

➡️ Are you aware of how Stock Awards are taxed?

➡️ And if you have other avenues to own Microsoft stock, such as ESPP and 401k, do you know your full exposure? Do you have a concentration that may be impacting your overall risk?

➡️ Should you hold them or sell them?

➡️ And are you too busy to figure it all out?

All great questions, and all things we discuss with our clients who have Stock Awards.

Reach out to learn how we incorporate your employer benefits into an actionable and comprehensive plan.

Microsoft

A DREAM written down with a date becomes a GOAL.

A GOAL broken down into steps becomes a PLAN.

A PLAN backed by ACTION becomes REALITY.

Are you looking for guidance in making your financial goals reality? Contact us today.

Calling all Seattleites! The third annual One Seattle Day of Service is this Saturday, May 18th. Visit this website for a wide variety of opportunities to give back to our community – https://bit.ly/3WG77S9.

Take action and join thousands of volunteers along with Mayor Bruce Harrell to improve our city!

City of Seattle Government

Have you defined your goals? And what steps do you need to take to reach them?

We can help you put both aspects in focus. Contact us to get started today.

💐 In honor of Mother’s Day and National Limerick Day, how about a little rhyme celebrating all the amazing moms out there including mine –

There once was a mom so fine,
Her love was like sweet sunshine.
With hugs so tight,
She fills hearts with delight,
She makes every day truly divine!

Wishing all the mothers a day filled with joy, love and relaxation! 💐

A few points from the markets and economy last week:

🗠 The major U.S. stock indexes rose for the second week in a row, recovering much of the ground lost during three weekly declines in April. The latest week was choppy, as stocks tumbled on Tuesday before rebounding on Thursday and Friday amid positive sentiment over earnings and jobs data.

🗠 U.S. stock indexes climbed on Friday and bond yields fell after a jobs report eased concerns about labor market-induced inflationary pressures, potentially shifting the outlook for interest-rate cuts. In April, the economy generated 175,000 jobs, down from an upwardly revised 315,000 figure in March. Wages rose at a 3.9% annual rate versus 4.1% in March.

🗠 Profits at some of the biggest technology companies continued to improve as earnings season neared an end. FactSet reported on Friday that analysts were expecting S&P 500 companies overall to post a 5.0% first-quarter earnings increase compared with the same quarter a year earlier, based on results released so far and projections for companies that haven’t yet reported. Just a week earlier, the projected growth rate was 3.5%.

🗠 As expected, the U.S. Federal Reserve kept its benchmark interest rate at the highest level in more than two decades as it again held off on any rate cuts. Fed officials acknowledged that they have recently seen “a lack of further progress” in bringing inflation closer to the Fed’s 2% long-term target rate.

Happy National Small Business Week to all the incredible small business owners out there, especially those in our vibrant Seattle community!

This week, let's celebrate the passion, resilience and creativity that fuel our local businesses. As a fellow small business owner, I appreciate your hard work and dedication that not only supports our economy but also enriches our neighborhoods.

Let's shop local and spread the word about our favorite spots. Every little bit helps in keeping our community strong. 💪🎉

When you hear the word “budget”… does a four-letter word come to mind?

Jokes aside, think of it as a spending plan and a foundation for your household.

As part of , we wanted to share five reasons why you should have one:

1️⃣ It can help you save money: Having a budget gives you a plan to spend your money responsibly and can help you save for larger expenses like a new car or a home.

2️⃣ It can help you pay off debt: Knowing how much money you have coming in and going out each month can help you develop a plan to pay off debt faster.

3️⃣ It can help you reach long-term financial goals: Whether you want to retire early or buy a vacation home, having a budget can help you plan for the future and achieve your goals.

4️⃣ It can help you stay organized: A budget can help keep your finances organized, so you know where your money is going and how it’s being used.

5️⃣ It can help you make smarter spending decisions: A budget can help you decide which expenses are necessary and which can be cut, so you can make smarter spending decisions.

A quick market recap from last week and a look ahead:

✅ The S&P 500 and the NASDAQ posted big weekly gains and snapped a three-week string of declines as strong earnings from technology companies helped offset disappointment over the latest economic and inflation reports. The NASDAQ finished more than 4% higher for the week while the S&P 500 was up nearly 3%; the Dow lagged, posting a fractional gain.

✅ Near the midpoint of earnings season, the earnings growth outlook has improved relative to the previous week. FactSet reported on Friday that analysts were expecting S&P 500 companies to post a 3.5% first-quarter earnings increase compared with the same quarter a year earlier, based on results released so far and projections for companies that haven’t yet reported. Just a week earlier, the projected growth rate was 0.5%.

✅ Ahead of a U.S. Federal Reserve meeting, a report released on Friday showed that the Fed’s preferred gauge for tracking inflation remained above policymakers’ 2.0% long-term target rate. The Personal Consumption Expenditures Price Index rose at a 2.8% annual rate in March excluding food and energy prices—unchanged from February’s core inflation figure, and a tenth of a percentage point above what most economists had forecast.

✅ In addition to more quarterly earnings reports, the new week will bring a U.S. Federal Reserve policy meeting that concludes on Wednesday and a jobs report on Friday. The Fed is widely expected to keep interest rates unchanged; the jobs report will show how April’s jobs growth compared with March’s bigger-than-expected gain of 303,000 jobs.

In addition to collecting records, I love to read and many of you have shared some great book recommendations. (Keep them coming! 😊)

Just like the record stores I posted about last week, there are great independent bookstores in the area as well. This article was in Sunday’s The Seattle Times if you want to start planning your visits for , which is tomorrow:

https://www.seattletimes.com/entertainment/books/all-61-seattle-area-independent-bookstores-our-writer-has-been-to-so-far/

// What are the pros and cons of a 401k plan? See below 👇

Pros:

→ Tax Deductible Contributions: Employees can contribute pre-tax dollars to their 401k plan and reduce their taxable income.

→ Employer Matching: Employers may match a portion of the employee’s contributions, providing a great incentive to save.

→ Automated Savings: Employees elect their contribution percentage and the savings occurs with each payroll – out of sight, out of mind savings.

Cons:

→ Contribution Limits: 401k plans have annual contribution limits that may limit the amount of money an employee can save.

→ Investment Choices: 401k plans typically offer limited investment choices and limited investment classes.

→ Limited Access: Early withdrawals are usually discouraged and may be subject to additional taxes and penalties.

Here are a few points in the world of finance:

📌 The retreat from the record high that the S&P 500 achieved in late March accelerated, as the index finished the week down 3.0% to post its third negative result in a row. The NASDAQ’s weekly decline was steeper at about 5.5%; in contrast, the Dow posted a tiny gain.

📌 Worries about technology companies and the interest-rate outlook weighed on growth stocks, and a U.S. large-cap growth benchmark trailed its value counterpart by a wide margin. The growth stock index closed down nearly 5% for the week versus a less than 1% decline for the value index.

📌 Yields of U.S. government bonds rose for the third week in a row as investors continued to rein in their expectations for near-term interest-rate cuts. The yield of the 10-year U.S. Treasury bond briefly rose as high as 4.69% on Tuesday—the highest since last November—before retreating somewhat to close at 4.61% on Friday.

Happy Record Store Day! It is time to celebrate and bring together fans, artists and thousands of independent record stores around the world.

My two favorite local stores are and and I hope to visit both. Any other recommendations?

“We haven’t the faintest idea what the stock market is gonna do when it opens on Monday—we never have.” – Warren Buffett, Berkshire Hathaway Chairman and CEO.

Attempting to predict the ups and downs and timing the markets just right is near impossible.

Given the movements of the markets, dollar-cost averaging can help you keep investing and potentially lower your average investment cost.

Dollar-cost averaging lends itself practically to the investment process. By taking the investment decision off of the investor’s plate—much like what’s done with contributing to a 401(k)—an investor can easily stick to an investment plan.

Breaking down the purchase of investments into several smaller blocks also greatly reduces the risk of regret from ill-timed purchases. When the market falls, you can be happy to add to your investments at lower prices, and when the market rises, you can be happy that you got in at lower prices.

The week of financial news:

✦ For the second week in a row, the S&P 500 and the Dow retreated from the record highs they set at the end of March. The NASDAQ’s fractional weekly decline was smaller than those of its peers, owing in part to relatively strong performance from a handful of technology stocks.

✦ Wednesday’s hotter-than-expected inflation data reinforced recent market expectations that initial interest-rate cuts are no longer imminent—a view that was backed up later in the day by the release of minutes from the U.S. Federal Reserve’s March policy meeting. Fed officials agreed that they were prepared to keep rates at current high levels for longer than they had previously anticipated.

✦ In the wake of Wednesday’s inflation report, the yield of the 10-year U.S. Treasury bond rose to the highest level in five months, as it climbed as high as 4.59% at one point. As recently as February 1, the 10-year yield had closed as low as 3.86%.

✦ Today’s scheduled release of U.S. retail sales data could indicate whether a recent positive turnaround in momentum extended into March. In February, sales rebounded to a 0.6% gain after posting an unexpected 1.1% decline in January.

Did you know it is D.E.A.R. Day? Drop Everything and Read Day --- to celebrate author Beverly Cleary’s birthday.

Hope you find some time to enjoy a good book!

For Financial Literacy Month, a MARKET VOLATILITY TIP → Keep your emotions in check. Everyone wants to “buy low” and “sell high,” but most investors, caught up in the heat of the moment, end up doing just the opposite.

This image shows the host of emotions investors may feel during a typical market cycle. As stock market prices rise, investors are optimistic. At the top of the market, investors may even feel euphoria, thinking, “This is great. I should invest more.” This is actually the time investors should consider rebalancing.

As stock market prices fall, fear starts to set in. At first, you may think, “It’s ok, I’m a long-term investor.” But as prices drop even further, you may be thinking, “Maybe this time is different.” It’s time to rebalance again.

Staying in balance when the market is down enables you to invest in high-quality stocks when they are “on sale.” As the stock market starts to rebound again, optimism returns.

Rather than reacting to the everyday ups and downs of the stock market, investors might be
better served by adhering to the Principles of Prudent Investing:

1. Set clear, realistic, long-term goals
2. Keep investing, regardless of market fluctuations
3. Diversify—don’t put all of your eggs in one basket
4. Select quality investments with professional advice

We are thrilled to share that Paul Pradel has been recognized once again as one of Forbes' 2024 Best-In-State Wealth Advisors!

“While I'm grateful for this recognition, it's important to acknowledge that our success at Pradel Financial Group is a team effort. Huge thanks to Moore! This honor reflects our collective commitment to our clients, who are like family to us.

Thank you for your ongoing support, which enables us to continue helping others achieve their financial goals and live fulfilling lives.” — Paul



2024 FORBES BEST-IN-STATE WEALTH ADVISORS, created by SHOOK Research. Presented in April 2024 based on data gathered from June 2022 to June 2023. 23,876 were considered, 8,507 advisors were recognized. Not indicative of advisor’s future performance. Your experience may vary. For more information, visit https://tinyurl.com/uvaujs2t.