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August 2024

Market Update

(all values as of 08.29.2025)

Stock Indices:

Dow Jones	45,544
S&P 500	6,460
Nasdaq	21,455

Bond Sector Yields:

2 Yr Treasury	3.59%
10 Yr Treasury	4.23%
10 Yr Municipal	3.20%
High Yield	6.44%

YTD Market Returns:

Dow Jones	7.05%
S&P 500	9.84%
Nasdaq	11.11%
MSCI-EAFE	20.36%
MSCI-Europe	22.28%
MSCI-Pacific	16.87%
MSCI-Emg Mkt	17.01%

US Agg Bond	4.98%
US Corp Bond	5.30%
US Gov’t Bond	4.81%

Commodity Prices:

Gold	3,516
Silver	40.76
Oil (WTI)	64.03

Currencies:

Dollar / Euro	1.16
Dollar / Pound	1.35
Yen / Dollar	147.05
Canadian /Dollar	0.72

Portfolio Overview

Stocks gained ground in August. Ocean Park Investors Fund rose 0.74%*, while the S&P 500 rose 2.28% and the NASDAQ Composite rose 0.65%. The fund’s technology stocks rebounded modestly from their July downturn.

During the month, we increased positions in the consumer discretionary and service sector and reduced positions in the technology sector. We sold several stocks in advance of or after lackluster earnings, including Applied Materials, Foot Locker, and Lam Research. We replaced them with brighter prospects, including Cirrus Logic, Roku, Teradyne, and Zoom Video. We finished the month at a bit less than 100% net long, up from about 98% in July.

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

Recession fears hit the market as August began, with the S&P 500 falling 6% in the first three trading days and the Magnificent 7 falling almost 10% in the first week. But stocks rebounded on calming signals from the Fed and encouraging economic statistics. In the end, nine of eleven sectors in the S&P 500 gained in August, with consumer staples the big winner and energy the worst loser. Value outperformed growth. Volatility was noteworthy, as the S&P 500 moved more than 1% on 9 of 22 trading days.

First quarter earnings reported in August were strong. With 99% of S&P 500 companies reporting, 79% beat consensus earnings expectations, slightly better than the 5-year average of 77%. However, only 62% beat consensus revenue expectations which is below the five-year average of 69%. This continues the disconnect we noted in the past several quarters.

Macro Overview

Macro Overview

Headlines in early August generated concerns about economic growth. Payrolls increased by only 114,000, well below expectations of 175,000, and unemployment ticked up to 4.3%, above expectations of 4.1%. Manufacturing was weak. But subsequent headlines were encouraging, as retail sales beat estimates and year-over-year inflation cooled to 2.9%, the lowest rate since March 2021

Perhaps most significant was the positive news on interest rates. On August 23, in his annual speech at the Jackson Hole Economic Symposium, Fed Chairman Powell finally confirmed that interest rate cuts were imminent. He stated, “The time has come for policy to adjust.”

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.