Looking Toward 2025
Here’s a quick update on what we’re paying attention to as we come to the end of 2024: Markets Stocks: The market overall is expensive on almost all common metrics: market cap to GDP, price to sales, etc. We are very wary of the most popular, most expensive stocks that have done so well lately. A handful of VERY pricey tech stocks are driving the DOW, S&P500, and NASDAQ, Bond: The bond bull market ended in 2020 after almost 40 years. Long rates have risen for almost 4 years now, and bond prices have been DOWN for 4 years in [...]
Five Strategies to Maintain Your Investment Focus After Election Day
Five Strategies to Maintain Your Investment Focus After Election Day Whether your preferred candidate won or lost on election day, the 2024 election results have alleviated a degree of market uncertainties, prompting a positive market reaction. We recommend approaching this post-election moment with measured optimism while staying true to sound investment principles. Here are five strategies to help you navigate this new political and economic environment: Markets React to Uncertainty: The post-election rally reflects the removal of ambiguity rather than a guaranteed economic windfall. Stick to your long-term goals and resist chasing short-term gains driven by political news. Rebalance If [...]
Letter to My Daughters: On Politics and Markets
Your mother asked me to write about "The Impact of Political Uncertainty on the Markets,” which is pretty simple. The markets hate uncertainty; they hate not knowing what the rules of the game are or are going to be; and the more uncertain things are the worse the markets behave (meaning they go down and you lose money). However, there are more nuanced, subtle, and complicated impacts that politics have on markets, economies, and prosperity for individuals and nations. Over the last several months (or has it been years?), I’ve been writing to you about the importance of work, the [...]