A Long-Term Perspective For The Road Ahead: Insights From Our Q4 2024 Economic And Market Review

2025-01-29 06:30:00 ET

Summary

• Geopolitical tensions and an uncertain inflation outlook rattled markets in the fourth quarter but U.S. stocks still managed to move higher.
• While other equities lagged and bonds remained flat, investors who held a balanced portfolio once again did well.
• As a new year and a new U.S. administration begins, it’s a good time to review client portfolios and prepare to navigate the road ahead.
• Global diversification will become even more important as U.S. large cap valuations and dominance increase.

You've likely heard the saying, "when the going gets tough, the tough get going." A similar principle can apply to investing: "when the going gets tough, stay in the market."

It's not a stretch to say that the going was pretty tough in the fourth quarter of 2024. Financial markets were volatile, and for good reason. There was a U.S. presidential election, won by Republican candidate Donald Trump, followed by U.S. policy uncertainty . There was the brief but worrisome threat of a government shutdown. The U.S. Federal Reserve cut rates as expected but then said it will be more cautious about further reductions, rattling the markets....

Read the full article on Seeking Alpha

For further details see: