Ocean Park Capital Management

2503 Main Street

Santa Monica, CA 90405

Main: 310.392.7300

Daily Performance Line:  310.281.8577

July 2024
Market Update
(all values as of 11.28.2025)

Stock Indices:

Dow Jones 47,716
S&P 500 6,849
Nasdaq 23,365

Bond Sector Yields:

2 Yr Treasury 3.47%
10 Yr Treasury 4.02%
10 Yr Municipal 2.74%
High Yield 6.58%

YTD Market Returns:

Dow Jones 12.16%
S&P 500 16.45%
Nasdaq 21.00%
MSCI-EAFE 24.26%
MSCI-Europe 27.07%
MSCI-Emg Asia 26.34%
MSCI-Emg Mkt 27.10%
 
US Agg Bond 7.46%
US Corp Bond 7.99%
US Gov’t Bond 7.17%

Commodity Prices:

Gold 4,253
Silver 57.20
Oil (WTI) 59.53

Currencies:

Dollar / Euro 1.15
Dollar / Pound 1.32
Yen / Dollar 156.21
Canadian /Dollar 0.71
 

Portfolio Overview

Stocks were mixed in July.  Ocean Park Investors Fund fell 4.37%*, while the S&P 500 rose 1.13% and the NASDAQ Composite fell 0.75%.  The fund underperformed in July because markets temporarily rotated out of the technology sector, which had largely fueled our outperformance over the last two years.

During the month we increased positions in the health care sector and the SPY ETF, and reduced positions in the autos and transportation, producer durables, and technology sectors.  We sold several stocks in advance of or after lackluster earnings, including Ford, Ingersoll Rand, Netflix, and SkyWest. We replaced them with brighter prospects, including Boston Scientific, Brinker International, Burlington Stores, and Carvana.  We finished the month at about 98% net long, unchanged from June.

 

 

 

Daily updates on our activity are available on our Results Line, at 310-281-8577, and current information is also maintained on our website at www.oceanparkcapital.com. To gain access to the site enter password opcap.

*These results are pro forma. Actual results for most investors will vary. See additional disclosures on page 4. Past performance does not guarantee future results.

 
Equity Overview

Equity Overview

Ten of eleven sectors in the S&P 500 gained in July, with technology the only loser and real estate the big winner.  Value outperformed growth.  Volatility increased, as the S&P 500 moved more than 1% on 6 of 22 trading days.

First quarter earnings reported in July were strong.  With 41% of S&P 500 companies reporting, 78% beat consensus earnings expectations, slightly better than the 5-year average of 77%.  However, only 60% beat consensus revenue expectations which is below the five-year average of 69%.  This dichotomy has been a feature of earnings reports for several quarters and suggests that improved profits are increasingly based on gains in efficiency rather than sales volume.

The forward price/earnings ratio for the S&P 500 was 20.6, above the 5-year average of 19.3.

 

 

 
Macro Overview

Macro Overview

Economic headlines in July were generally positive.  Durable goods orders looked weak because of poor numbers from Boeing– but excluding the transportation sector, they were higher.  Job growth was solid.  Consumer sentiment rose.  The Commerce Department initial estimate of second quarter GDP growth was 2.8% annualized, better than the first quarter (1.4%) and better than analyst expectations.

But the most significant news was about inflation.  The Consumer Price index rose 3.0% year over year, down from 3.3% in the previous month. And the PCE chain price index—which is the Fed’s preferred inflation measure—rose 2.5%, down from 2.6% in the previous month.

At its month-end meeting, The Fed took note of these developments, stating that “inflation has eased over the past year but remains somewhat elevated.”    For his part, Chairman Powell suggested that if trends continue the Fed could cut interest rates at its September meeting.  Markets now rate the likelihood of a September cut at 100%.

 

 

 
Additional Disclosures

Additional Disclosures

Performance data for OPI reflect the reinvestment of dividends and other earnings on the fund’s assets.  Performance data for the major indices reflect only changes in the value of those indices, and would be higher if dividends were included. However, the index data do not reflect fees that would be paid to index fund managers and transaction costs that would be incurred when their component stocks are bought or sold, while OPI’s data do reflect quarterly fees and expenses incurred by the fund.  The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.

 

 

 

 

 

 

 

 

 

Ocean Park Capital Management · 2503 Main Street · Santa Monica CA 90405 · 310-392-7300