PrePlan Funeral Trust: Market Recap
By Melissa Sargalis, Director of Preneed Trust Services
A group of FDSS Trustees and the FDSS Board of Directors (all NYS licensed funeral directors and NYSFDA members) govern PrePlan Funeral Trust. We count on a group of professionals, experts in your profession, to help guide our business affairs. PrePlan works closely with professional investment advisors from Graypoint, LLC as well.
Each month the five FDSS Trustees, along with the Executive Director, Mike Lanotte, and myself (Director of Preneed Trust Services), set aside time to receive a market update from Graypoint, LLC. This month I thought I’d share a recap from our mid-July discussion with our investment advisors in which they recap Q2 2024.
Q2 2024 capped the fourth year of an economic expansion that started in April 2020 with a sharp rebound from the pandemic recession. At a high level, the expansion has been stronger than many expected in the wake of the Federal Reserve’s inflation fighting campaign, characterized by a resilient job market and robust consumer spending helped by real wage and wealth gains. Investors initially reacted negatively to positive economic data in April fearing continued strong growth would thwart disinflation progress. Those fears subsided and soft-landing hopes reemerged as economic data began to show some softness. By May, the weight on equity and bond markets lifted as the outlook for inflation again started to look more favorable. We enter Q3 cautiously optimistic amidst signs of a decelerating yet still growing economy. We are mindful that the job market – still healthy and “in balance” by most measures – has shown nascent signs of vulnerability. At the same time, we are encouraged by renewed progress on disinflation and continued corporate earnings growth.
Inflation improvement continues. After meaningful progress in 2023, inflation declines appeared to pause somewhat early in 2024. Recent data, both official and anecdotal, suggest inflation reduction headway towards the Fed’s 2% target has resumed. Core PCE (the Fed’s preferred measure) came in at 2.57% in May, the lowest annual rate since March 2021. It’s premature to declare victory, but recent trends are more encouraging. At the same time, inflation has improved without a major negative impact on the employment situation, which bodes well for consumer finances, consumer spending and the broader economy.
As you continue to work with PrePlan, or consider opening accounts with us, keep the following in mind. Our Trustees, your peers, take their role seriously and always utilize the investment tools and guidance available in accordance with the law. They consider each investment decision carefully. PrePlan’s funds are federally insured for each consumer. We know families trust you to make important decisions on their behalf to ensure the safety, security, and compliance of their funds. And in turn, PrePlan takes your trust seriously. The Gold Standard. Our Promise to You.
Please stop by our booth at the Annual Convention. I always enjoy connecting with participating members and am happy to answer any questions you may have about working with PrePlan.