An Unlikely Year
December 2024
If I had to use a single word, to sum up 2024, it would be “unlikely”.
At the start of the year, few would have predicted the twists and turns of the presidential election (Biden’s debate performance and subsequent decision not to run, Trump’s attempted assassination, the red wave, etc). Equally as unlikely was the stock market’s amazing year….
RATES FELL. NOW WHAT?
OCTOBER 2024
For the first time since 2020, the Feds cut interest rates. This wasn’t surprising, but the .50% cut was larger than many predicted (there was only a 45% probability of a .50% rate cut the week before the meeting). What does this mean for stocks, bonds, real estate, and commodities?
addressing presidential myths
september 2024
If you scroll social media for more than a few minutes then you’re sure to see politically charged posts about gas prices, inflation, and interest rates. But does the president have any real control over those issues? Let’s address some myths.
Impact of iNterest Rates
August 2024
Interest rates in the broad economy have a huge impact on asset values. More specifically, there is a direct relationship between interest rates and bond prices. In 2022, the Federal Reserve increased rates from 0% to 5% (roughly). In doing so, bond investors were forced to re-value their bonds to match the prevailing interest rates in the economy. In other words, no one in their right mind would accept a 2% return when they could buy something identical for a 5% return. Thus, bond prices fell considerably in 2022. The Federal Reserve has now held interest rates above 5% for more than a year, but the indication is that they plan to begin cutting rates this fall. What impact will that have on asset values? Financial advisor, Brady Raanes, breaks down why interest rates matter and what to be on the lookout for over the next several months.
Top Heavy
July 2024
At the moment, Microsoft, Nvidia, and Apple are the three most valuable companies in the country, and thus hold the largest weightings. The combined weight of those three stocks now accounts for more than 21% of the entire index. The other 497 stocks make up the difference. Most of the S&P 500’s performance is based on the biggest companies so what does that mean for the market as a whole when the index is top heavy?
Election Impact
June 2024
We are now just five months away from the 2024 presidential election, and starting to get questions about how the stock market may perform under different scenarios. Brady breaks down what we can expect based off historical data from past elections and what it could mean for the 2024 election.
Feeling taxed
May 2024
Unless you filed an extension, all of us just wrapped up our annual tax filings. In this process, you may have been reminded that taxes can take a significant bite out of your investment returns if you're not careful. But not to worry…. there are plenty of strategies you can employ to minimize your tax bill and keep more of your hard-earned money working for you…
Highly concentrated
April 2024
An interesting thing has happened over the last 12 months in the US stock market. A handful of large companies carried the index to new highs while most stocks lagged; over the last year (far right of the chart) over 10% of the stocks in the S&P 500 did better than the broad index itself.
Strength begets strength
march 2024
“Oh no, the market is at an all time high. Time to sell.” Not so fast. Let’s dissect a few charts first.
Nailed the landing?
February 2024
Years from now we may very well look back at February 2024 with fond memories. It may not instinctively feel like it, but we are living in a “goldilocks” time (at least, from an economic / investment standpoint). Let’s take a moment to appreciate it. These times are rare and they don’t last forever.
2024: A Way with Words
January 2024
What were the significant words from 2023 and what impact can they have going into 2024?
it Ain’t What You know
December 2023
What do we know… and don’t know about what is coming in 2024?