2024—A Look Ahead

2023 is behind us. The year presented surprising opportunities for both the equities and bond markets.

What will 2024 look like? There may be more questions than answers!

There are still lingering concerns over a potential recession. The inverted yield curve and uncertain impact of monetary tightening policies remain valid concerns. Yet, the labor market remains robust.

The emergence of Artificial Intelligence will have an impact on all of us. How exactly this affects the stock market is uncertainty.

Interest rates are stabilizing. Forecasts suggest that Fed rate cuts may materialize this year. Indeed, it appears that some of these potential cuts are already priced in the market. However, there is still a threat that inflation will not remain under control.

There are historical positive trends in the stock market in Presidential election years. Offsetting this, there are significant geopolitical concerns that could have a profound effect on 2024 stock market performance. These include the Ukraine, the middle east and China. Events in these parts of the world could impact oil prices and renew inflation concerns.

So, as mentioned, we face another year with short-term uncertainty. Have no concerns. Our focus for you is always long term. We always recommend that all shorter-term needs are covered by investments not subject to the historical volatility of the stock market. The fact that current interest rates are higher than past years affords investment opportunities that are attractive in their own right.

For those of you who have engaged us for full financial planning, we never encourage an asset allocation that is riskier than you need for your individual circumstances. As a planning client, you are assured that your portfolio is customized to you specifically.

For those of you who have not engaged us for full planning, perhaps now is the time to move forward.

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