Each quarter our team evaluates all investments held in our models to ensure we are considering market trends, economic outlook, investment quality and performance. After careful evaluation, we have made the following changes that will be implemented in the first quarter of 2024.
Bond Model
- The bond model has a yield of 6.06% and is selling at a discount of $88.56.
- We extended both duration and maturity as discussed in our market update. We have increased duration from 3.91 to 5.17, and extended the average maturity from 5.57 years to 8.55 years.
- Funds are in the top quartile for their class, compared to their peers.
| Beta | Alpha | Standard Deviation |
|
| Aggregate Bond Index |
1.00 | 0 | 7.24 |
| Feldmeyer Financial Bond Model | .92 | 2.01 | 7.08 |
Additions:
- HSNIX – Hartford Strategic Income I
- BMSIX – BlackRock Income Fund Instl
- VMFIX – Virtus Newfleet Multi-Sect Intrmdt Bd I
- LAUYX – Lord Abbett Income I
- PDBZX – PGIM Total Return Bond Z
- CBFSX – JPMorgan Corporate Bond I
- FSRIX – Fidelity Advisor Strategic Income I
- FIKQX – Fidelity Advisor® Investment Gr Bd Z
Sell:
- JMSIX – JPMorgan Income Fund;I
- STYIX – Allspring Short-Term High Inc Fd;Inst
- ESIIX – Eaton Vance Short Duration Strategic Income Fund;I
- ALHYX – AB Short Duration High Yield Portfolio;Advisor
- UTIXX – Federated Hermes US Treasury Cash Reserves;Inst
- LLDYX – Lord Abbett Short Duration Income Fund;I
- HYSZX – PGIM Short Duration High Yield Income Fund;Z
- ASHPX – Virtus Newfleet Short Duration High Income;P
High Yield Model
- Our high yield model has a dividend yield of 9.96%.
- We have made the decision to adjust the holdings based on current dividend yield and company forecasts for 2024.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.54 |
| Feldmeyer Financial High Yield Model |
.76 | 10.11 | 17.40 |
Additions:
- RWAY – Runway Growth Finance Corp.
- HESM – Hess Midstream
Sell:
- DVN – Devon Energy
- STWD Starwood Property Trust Inc
- CIM – Chimera Investment Corp.
Stock Model
- The stock model has our top individual stock picks for 2024.
- We have exposure in a diverse mix of sectors in the S&P 500 including technology, consumer cyclical, financial services communication services. Based on research and information from our corporate partners, we anticipate small and medium sized companies to excel in 2024 and have positioned the stock model to reflect this.
- Our alpha is 9.32 and beta is 1.11 compared to the S&P 500.
| Beta | Alpha | Standard Deviation |
|
| S&P 500 | 1.00 | 0 | 17.54 |
| Feldmeyer Financial Stock Model | 1.11 | 9.32 | 20.58 |
Additions:
- OLLI – Ollie’s Bargain Outlet
- SFM – Sprouts Farmers Market
- FRPT – Freshpet
- GS – Goldman Sachs
- ELF – ELF Beauty
- AXON – Axon Enterprises
- ZTS – Zoetis
- BMI – Badger Meter Inc
- ETN – Eaton Corporation
- CASY – Casey’s General Stores
- NFLX – Netflix
- SHW – Sherwin Williams Company
- TJX – TJX Companies
- C – Citigroup
- BROS – Dutch Bros
- MA – Mastercard
- INTC – Intel Corp
Sell:
- AMZN – Amazon.com
- TSLA – Tesla
- META – Meta Platforms Inc
- DE – Deere & Company
- LMT – Lockheed Martin Corp
*Performance metrics are historical and do not guarantee future returns