A Season of Market Gratitude: Thanksgiving 2024 Market Review

As we gather around Thanksgiving tables this year, investors have much to be grateful for. In the spirit of the season, let’s take a moment to reflect on the financial blessings of 2024 – a year that has delivered remarkable returns despite its share of challenges, from Federal Reserve decisions to global uncertainties.

 

Giving Thanks for Market Abundance

 

 

Just as a well-prepared Thanksgiving feast offers plenty to share, this year’s market has provided generous returns across the board. The S&P 500 has harvested gains of 26.7% with dividends, while the Dow and Nasdaq have reaped increases of 19.5% and 27.4%, respectively. Even our international portions of the market have flourished, with emerging markets growing by 9.0% and developed markets yielding 4.8%.

 

Like a diverse Thanksgiving spread, the market’s bounty hasn’t been limited to just one area. While tech and AI companies have been the turkey at this year’s feast, eight out of eleven S&P 500 sectors have served up double-digit returns. However, these abundant returns have pushed valuations higher, with the S&P 500’s price-to-earnings ratio now at 22.3 – a reminder that, like any good meal, balance is key to a healthy portfolio.

 

Grateful for Cooling Inflation

Among our many market blessings this year, the return of inflation to pre-pandemic levels stands out. While we’re still seeing price increases at the grocery store and beyond, the moderation in inflation has enabled the Federal Reserve to consider rate cuts for the first time since early 2022.

For our Columbus Street Financial Planning clients, this development is particularly worthy of thanksgiving, as lower inflation typically creates a more stable environment for long-term financial planning and could open new opportunities across various investment categories.

Appreciating a Bountiful Job Market

 

 

As we count our blessings this Thanksgiving, the robust job market deserves special recognition. Despite earlier concerns about a “hard landing,” the economy has shown remarkable resilience. We’re thankful for the creation of 28.6 million new jobs since the pandemic, exceeding previous employment levels, while unemployment remains near historic lows.

 

The broader economy continues to demonstrate strength that warrants gratitude, with real GDP growing at a healthy 2.8% annualized rate in the most recent quarter. While consumer spending has been plentiful – much like second helpings at Thanksgiving dinner – we’re mindfully watching the gradual reduction in pandemic-era savings and rising debt levels.

 

Serving Your Financial Future

 

At Columbus Street Financial Planning, this season of gratitude reminds us of several enduring financial principles:

1. 1. 1. 1. 1. Like treasured family recipes passed down through generations, successful investing requires patience and a long-term perspective.
            2. Just as a Thanksgiving table benefits from variety, your portfolio should remain well-diversified, especially in times of high valuations.
            3. Regular portfolio reviews, like annual holiday traditions, help ensure your investments remain aligned with your goals.
                

Looking Ahead with Gratitude

 

As we prepare to move from Thanksgiving into the winter season, we remain grateful for the trust you place in us to help navigate your financial journey. While we give thanks for this year’s strong performance, we continue to focus on building and maintaining portfolios that can weather all seasons of the market.

 

Remember, just as Thanksgiving is about more than one meal, your financial journey is about more than short-term gains. If you’d like to discuss how these market developments affect your personal financial plan or schedule a year-end portfolio review, please reach out to our team at Columbus Street Financial Planning.

 

We wish you and your loved ones a wonderful Thanksgiving filled with gratitude, good food, and meaningful conversations about what matters most.

 

 

Past performance is not indicative of future results. This article is for informational purposes only and should not be considered as investment advice.

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