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The capital markets have been hyper focused on inflation for the past three years. Since the end of 2022, the inflation rate has been steadily dropping, and that has been good for the markets. That trend continued during the third quarter of this year with overall PCE (personal consumption expenditures) increasing at an annual rate of 2.2%, the lowest annualized increase since February of 2021. Both stock and bond investors benefited from this as both markets posted solid gains for the quarter. We have spoken about this before, but it is worth repeating. The mandate of the Federal Reserve is to create conditions that will allow the economy to grow while at the same time keeping price stability, or low inflation. The Fed was reluctant to raise rates as we were coming out of the economic calamity of the pandemic fearing higher rates would cause a recession. The result of keeping rates near zero while the global economy came roaring back was high inflation. The Fed has admitted they kept rates too low for too long. Since inflation has been low for many years (it peaked more than 40 years ago) most people were caught off guard and were unprepared for the damage it creates. The resulting sell off in stocks and bonds was definitely a wake up call. To their credit, the Fed has seemingly made the right decisions since then. The inflation rate has dropped to near the Fed’s 2% target, and they have done it while the economy continues to grow. The Fed cut rates during the third quarter with a 50 basis point cut, larger than most people were expecting. Markets rallied as a result. Low interest rates are good for both stock and bond investors and a low interest rate environment is the best condition for the economy to do well. It is unlikely we will see rates back to near zero, but we believe they will drop to the 2.0-2.5% range on the short end of the yield curve. While economic conditions have improved, it is important to note that there are still issues that can derail economic conditions. European and Middle Eastern wars are always disruptive and have the ability to spread. It is also possible that the Fed has miscalculated conditions and we could fall into an economic recession. We think this is unlikely, but it can’t be ruled out. Consumers have very high levels of debt, which can lead to rapid spending cuts and high bankruptcies. Stocks are trading at high valuations, which can lead to larger than normal drops. As long as we see strong GDP growth and low inflation, investors should continue to be rewarded. Unforeseen events happen, so there will always be bumps in the road, but we are cautiously optimistic that this year will end on a high note. Wabash Capital

The second quarter started off with dropping stock and bond prices as hot inflation data spooked the markets. With the markets hyper focused on the Federal Reserve and hopes for lower interest rates, a jump in inflation was the worst possible news for investors. Most of the gains from the first quarter were lost during April. May gave the markets better news on inflation leading to rallies in both stocks and bonds in May and June. At the halfway point in 2024, stocks have posted solid returns year to date, while bonds, though positive year to date, have not done as well. Diminished expectations for rate cuts have kept interest rates higher than most economists had predicted, lowering bond prices. The U.S. economy continues to outperform expectations. Low unemployment, strong job creation, and strong corporate earnings, along with high consumer spending have all contributed to keep the economy growing. It is worth noting that all of this is happening while the Fed is trying to slow the economy down in efforts to reduce the inflation rate to their 2% target. Right now, it stands at 3.5%, much lower than it was a year and a half ago, but still higher than the Fed wants it to be. In the world of investing and economics, there is always a lot of discussion about economic growth (GDP) and what is possible and preferable. Too much growth usually leads to inflation, while dropping GDP gives us a recession. Walking that fine line is not an easy task. Looking back at economic history is helpful to put the economy in proper context. In 1929, nominal U.S. GDP was $105 billion. Today it is over $27 trillion. At its low point during the depression (1933) GDP had dropped to $57 billion, a drop of 45%. By 1939, GDP was higher than it was in 1929 before the depression. From 1929 through 2023, there have been 15 years that experienced a drop in GDP. This includes four in a row from 1930 to 1933 and seven other years that saw decreases of less than 1%. Since 1990, there have only been three negative years; 1991, 2008, and 2020. Large drops in GDP almost always lead to large drops in the stock market. On average, it takes about two years for stocks to recover from a bear market, although it took four and a half years to recover from the 2000 bear market, and 25 years to recover from the depression market drop that started in 1929. All eyes are on the Fed as what happens in the markets depends a great deal on what they do in response to inflation and economic activity. They continue to indicate that they see inflation coming down, which will allow them to lower interest rates. Low inflation and dropping interest rates would be the best outcome for investors. The biggest risk in attempting to slow the economy is that growth will become negative, and the economy will fall into recession. As of now, it appears the odds of a recession are dropping. Wabash Capital

Wabash Capital Earns Renowned Certification for Fiduciary Excellence Adherence to a global standard of fiduciary excellence officially marks a commitment to acting in the best interest of investors. Terre Haute IN – May 2024– After undergoing a thorough and independent assessment of investment management processes, investment strategy implementation, and other fiduciary practices, Wabash Capital today announced formal achievement of Centre for Fiduciary Excellence (CEFEX®) certification from Broadridge for the 10 th year. This makes Wabash Capital part of the elite group of nearly 250 firms from around the world to successfully complete the independent certification process. Part of the rigorous evidence-based assessment included successfully demonstrating adherence to documented and legally substantiated best practice fiduciary standards. The annually renewed certification signifies an ongoing commitment to providing consistent objective advice that’s in a client’s best interest – both at the institutional and individual levels. Don Edwards, President of Wabash Capital, Inc. said, “We are proud to be a CEFEX certified investment firm. This certification assures our clients that we are keeping up with the best practices in the industry. Our clients also know that we are a Fiduciary Advisor, meaning we are obligated to act in their best interest.” The CEFEX certification program is based on the International Standards Organization (ISO) 19011: Guidelines for auditing management systems. The standard, “Prudent Practices for Investment Advisors” is substantiated by legislation, case law, and regulatory opinion letters from the Employee Retirement Income Security Act (ERISA), the Investment Advisers Act of 1940, the Uniform Prudent Investor Act (UPIA), the Uniform Prudent Management of Institutional Funds Act (UPMIFA) and the Model Management of Public Employee Retirement Systems Act (MMPERSA) in the U.S. According to the Vice President, Centre for Fiduciary Excellence, Carlos Panksep, “Through CEFEX’s independent assessment, the certification provides assurance to investors, that Wabash Capital has demonstrated adherence to the industry’s best fiduciary practices. This indicates the firm’s interests are aligned with investors.” Wabash Capital is specifically certified for Investment advisory and management services for endowments, foundation and retirement plan clients serving in an ERISA 3(21) advisory role and/or ERISA 3(38) Investment Management Ro Official registration for Wabash Capital can be see www.wabashcapital.com as well as the Independent Assessment Report can be viewed here. To learn more about CEFEX certification visit cefex.org. About Wabash Capital, Inc. Company Overview: Founded in 1997, Wabash Capital is dedicated to maintaining and growing the financial resources of our individual, institutional and 401(k) & 403(b) retirement plan clients. As a privately held fee only advisor, we offer independent financial guidance designed to fulfill each client's unique needs and priorities. We establish a fiduciary relationship with each client, providing a personalized service unencumbered by third party compensation arrangements. This allows us to focus entirely on helping our clients achieve their financial goals. Our Mission Statement: At Wabash Capital, we will establish trust-filled client relationships to support our role as an advisor. We will listen to our clients’ needs and provide personalized investment advice that leads them to positive financial outcomes. About Broadridge Broadridge Financial Solutions (NYSE: BR), a global Fintech leader with over $6 billion in revenues, provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. We deliver technology-driven solutions that drive business transformation for banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. Our technology and operations platforms underpin the daily trading of more than $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work®, Broadridge is part of the S&P 500® Index, employing over 14,000 associates in 21 countries. For more information, please visit broadridge.com .

During the first quarter of this year, equity markets built on last year’s fourth quarter gains and continued their climb. Continued economic strength and lower inflation gave investors reasons to be optimistic that the economy can continue to grow while avoiding a recession. The bond market rally of last year paused, as this same economic strength caused bond investors to rethink their optimism that the Fed will be cutting interest rates multiple times this year. The current bull market in stocks has been impressive. Stocks have rallied with the “better than almost everybody thought it would be” U.S. economy. As inflation has dropped, recession fears have faded, and equity markets are at all-time highs. The S&P 500 Index set 17 all-time closing highs in the first 50 trading days of this year, the most since 1998. Because the S&P 500 Index is a market weighted index, as opposed to the Dow Jones Industrial Average, which is an equal weighted index, the largest companies have an outsized impact on the index. In fact, the seven largest tech stocks (Apple, Microsoft, Google, Amazon, Nvidia, Meta, Tesla) account for 30% off the S&P’s value, an all time high. Last year, these seven stocks gained an average of 71%, while the other 493 stocks in the index averaged a 6% gain. Looking at a static return number definitely does not tell the whole story of the strength of the stock market. The bond market has not moved much this year as segments of the economy continue to expand faster than the Fed wants them to. While inflation has dropped dramatically from its high in 2022, it remains above the Fed’s target, and as long as that is the case, interest rates are likely to remain elevated, especially on the short end of the yield curve. The Fed has reiterated that they plan to cut rates at least three times this year, but we will need to see some of these inflationary pressures ease before this happens. Until then, the yield curve remains inverted, and the risk remains elevated that the Fed will not reduce rates in time to prevent a recession. GDP growth for last year came in at 2.5%, which is quite remarkable given the forecasts of most analysts at the beginning of the year. It looks like GDP growth in the first quarter of 2024 will also come in around 2.5%. Most forecasts we are seeing show our economy growing this year about the same as it did last year. We don’t see anything that would make us forecast growth differently than this consensus. We think inflation will continue to drop to closer to the Fed’s target of 2% later in the year. Our forecast for the markets has not changed since the end of last year. Stocks will be helped by dropping inflation rates and by lower interest rates, but with sky high valuations, there are elevated risks if there are unforeseen events. Bonds will also benefit from lower interest rates but will tread water if inflation and interest rates stay higher than normal. Much depends on the Fed. Wabash Capital

Team member Ginger Scott has successfully completed the training, validation and testing necessary to become a Registered Fiduciary for 2024. The Registered Fiduciary (RF™) Certification identifies financial professionals and organizations as competent fiduciaries that have achieved pertinent educational qualifications and licenses, learned required skills, and have passed a background check. The RF™ award to Ginger Scott recognizes particular skills in the area of Retirement Services In addition, Ginger and the team provide Investment Management and Advisory services to Individuals, Trust, Corporations, Banks and Labor Unions. In acting as a Registered Fiduciary Ginger Scott and the Wabash Capital Team is committed to always acting in the best interest of clients, using the skills, ethics and focus on the client needs that the Certification represents. Mrs. Scott also holds the Accredited Retirement Plan Specialist Certification. “At a time when the public concern has been elevated by years of financial excesses and scandals, the RF™ validation process offers comfort in the knowledge that our firm has been found worthy of this distinction” said Don Edwards, President, adding “We have always been dedicated to our clients and this award gives us the independent confirmation of this policy.” Wabash Capital, Inc. is SEC registered Investment Advisor under the Investment Advisor Act of 1940.  The Registered Fiduciary Certification is based on the 2010 Fiduciary Standards of the Fiduciary Standards Board and validated by Dalbar, Inc., the independent expert. The Fiduciary Standards Board is a not-for-profit (501(c)(3)) organization established in September of 2000 to develop and advance standards of care for investment fiduciaries, which includes trustees, investment committee members, brokers, bankers, investment advisers, money managers, etc. The Fiduciary Standards Board is independent of any ties to the investment community and therefore positioned to be a crucible for advancing fiduciary standards throughout the industry and to the public. Dalbar, Inc. is the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service. Launched in 1976, Dalbar has earned the recognition for consistent and unbiased evaluations of investment companies, registered investment advisers, insurance companies, broker/dealers, retirement plan providers and financial professionals. Dalbar awards are recognized as marks of excellence in the financial community.

This time last year, most economists were calling for a recession in 2023. Inflation was 9% and the Federal Reserve was rapidly raising interest rates in an attempt to lower it. Historically, these conditions almost always lead to a recession. Stock investors braced for further trouble after a difficult 2022. As is typical after a bad year for investors, we experienced large market swings in 2023. The first six months of the year were positive for both stocks and bonds. The next four months were negative for both. We ended the year with a furious rally in the stock market and the bond market in November and December, giving us solid returns across the board for the year. Inflation has dropped to 3%, and the most anticipated recession in history failed to materialize. For the year, the U.S. economy performed better than almost everyone expected it to. While the Fed may yet achieve the soft landing they are looking for, we are certainly not past the threat of a recession. The economy is definitely slowing, and we will need to wait to see whether it slows enough to keep inflation at bay, or whether it slows too much and dips into recession. Just like the predictions for this year, most economists expect lower GDP growth for 2024 than we saw this year. The yield curve remains inverted, which typically precedes a recession. The Fed has indicated they are open to lowering rates in 2024 to keep economic growth positive. Time will tell, but the Fed, in spite of keeping interest rates too low for too long and letting inflation get away from them, has been very good at keeping the economy growing. So where does this leave us as investors? Stocks benefit from dropping interest rates, so a slowing economy and lower interest rates are a positive. The economy slowing too much and causing earnings to drop would be a negative. It is also worth noting that valuations in the stock market are extremely high, making stocks more susceptible to big drops if things don’t go well. Bond investors will also benefit from dropping interest rates and a slowing economy. Bonds seem the safer bet right now, but we suspect stocks may do well in 2024, especially if we avoid a recession. If we do experience a recession, we believe it will be relatively mild. We lost an investment legend in 2023, as Charlie Munger, Warren Buffet’s investing partner, died at age 99. Charlie was always willing to verbalize his opinions, almost always with humor. Here are a few of our favorite quotes: “If I can be optimistic when I’m nearly dead, surely the rest of you can handle a little inflation”, “Being rational is a moral imperative. You should never be stupider than you need to be”, “Those who will not face improvements because they are changes, will face changes that are not improvements.” We can all learn much from people like Charlie Munger. Never hesitate to contact us if you have questions about your investments. Also, let us know if you would like an updated copy of our Form ADV, Part 2. Wabash Capital

After a strong first half of the year, increased concerns that interest rates will continue to climb caused markets to fall during the third quarter. Stocks, after starting a new bull market early this year, neared correction territory in September. Bonds have been drifting lower as interest rates have slowly and consistently moved higher. Rising energy prices have stoked fears about inflation, and with the Federal Reserve hyper focused on the inflation rate, most economists are now expecting interest rates to stay high longer than initially thought. GDP is expected to rise over 4% during the third quarter, which is amazing given the current level of interest rates. It looks like we’re in for a bumpy ride. We have spoken at length in past letters about the inverted yield curve. This doesn’t happen often, but when it does, it almost always foretells a recession. The current inversion is the longest and deepest inversion since the early 1980’s. While many analysts and economists have stepped back from their recession predictions, the fact remains that we are at an elevated risk of recession, and the deeply inverted yield curve cannot be ignored. We are often asked why higher interest rates make the markets go down. Increasing interest rates hurt both stocks and bonds, but in different ways. With bonds, it’s a matter of simple math. As rates move higher, existing bonds become less attractive relative to newer bonds. Movements in bond prices as rates change are easily calculated. Duration and convexity tell us how much bond prices will rise or fall with changes in rates. When rates rise, bond prices drop, and when rates drop, bond prices rise. This relationship never changes. Rising interest rates hurt stocks in several ways. Appropriate valuation calculations for stocks are usually done through models that use short term rates to discount cash flows. As rates rise, valuations drop. Higher interest rates also make safer investments like bonds more attractive relative to stocks. Also, high rates slow economic activity, leading to lower profits for businesses, thus dropping stock prices. The Federal Reserve has a very difficult job. They are charged with keeping the economy growing while doing it with low inflation. They have been mostly successful at this for forty years. They had some missteps coming out of the pandemic but that was a unique set of circumstances. It will be interesting to see how history judges them. Over the next twelve months we could very well see energy prices drop along with inflation. This would likely lead to strong rallies in both stocks and bonds. If the Fed achieves their soft landing, consumers and investors will benefit. Until then, we, like everyone, will be watching the Fed. Wabash Capital