Cup of Joe: January Markets

Mixed emotions of a good year.

- S&P 500 returned 25% which makes it two years in a row the index was up that much. US midcaps & Small caps returned low double digits. And International and Emerging Market stocks contributed modestly gaining 4.4% and 8% respectively.

- The Aggregate Bond Index was positive 1.3% while dealing with a swirling interest rate climate throughout the year.

- The Top Dogs were the areas that have dominated performance for 2 years. In fact, Mag7 accounted for 55% of the S&P 500's price return in 2024.

- Fight the urge to chase performance. Chasing returns is an endless game of comparing one asset to another… A grass-is-always-greener situation.

- From a diversified portfolio

- Why aren't I all in stocks vs bonds?

- Why aren't I all in US vs Intl?

- Why aren't I all in Large cap?

- Why aren't I all in tech?

- Why aren't I all in NVDA?

- In investing there's always going to be some other asset class that did better. And since the time frame is continuously changing. Comparing becomes an impossible and exhausting feedback loop which will rob you of peace-of-mind.

The Year Ahead

- Recent review of several strategist outlooks revealed a couple salient points looking into 2025:

1. There are certain risks in the near term, such as a slow down or pause in cutting interest rates and stretched stock prices at the top of the market. These risks that may cause some volatility, so we should expect to see that.

2. The US economy is on solid footing and the landscape is supportive for stocks.

3. There are pockets of the global market that present very good buying opportunities.

4. Bonds are providing good coupons to investors and are a meaningful diversifier in your asset allocation.

Control what you can control

1. Spending

- Planning big purchases? Start thinking about those now.

2. Savings rate - look for ways to increase the amount your saving and investing; and automate if possible!

3. Media exposure - Be mindful of what your watching or reading when it comes to financial press.

4. Educate yourself. Gaining more information helps frame grounded expectations, which does wonders! for your emotional outcomes when it comes to your money. Simply put, it can save you a lot of stress.

5. New year, New Financial Goals - Write them down, take an honest look at what its going to take to work toward them, and share all of this with your advisor. Our goal is to help you succeed in achieving yours.

Writen by: Joe Gallemore, CIMA?, CExP?

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Securities offered through Osaic Wealth, Inc. Member FINRA/SIPC. Advisory Services offered through Osaic Advisory Services, LLC (Osaic Advisory). Osaic Wealth and Osaic Advisory are separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth and Osaic Advisory.