We welcome Walter Keith into the Ascent Wealth Advisory ring.  Walter is a long time friend and experienced Advisor.  We are glad to have him affiliate with us.

The stock market has had a strong year and, barring any last minute hiccup through the holidays, we finish a year where the indices surprised nicely to the upside.  It remains a case where a few have carried the many.  However, some broadening has taken place and the rise has been much more enjoyable for investments outside the tech sector.  Aside from the handful of index leaders, the majority are “up”, though not necessarily in outstanding form.  As we’ve mentioned before, regardless of the election outcome, we are glad to have an election behind us and the data ahead will be crucial to what happens with the markets.  For the economy, whether we are heading into recession or totally avoiding one will unfold and affect corporate earnings in 2025.  And although AI-related firms are growing very fast, whether those ever increasing expectations can be met will also drive their destiny.  We are in unusual territory in terms of the market’s behavior without a “real” correction and with such a narrow group of stocks providing the leadership.  I was on one Investment Strategy conference call where the primary Strategist said the best argument for the market continuing its path was that “the market can certainly behave differently than has historically transpired”. 

For bonds, higher yields have been welcomed and actually contributing again to total returns.  Yet inflation has remained sticky (that’s their term at the Fed) and not conquered yet.  Of recent is a modest rise in interest rates even while the Fed has LOWERED the Fed Funds rate.  So, again, the data in the new year will be interesting.

Wishing you well!  Thanksgiving was last month. . .but nevertheless, Caitlin and I are THANKFUL for you and we love our “business”.  We are grateful for these relationships and look forward to serving you in whatever way we can in 2025.

Merry Christmas!

Key