MARKET OVERVIEW

As of Close of 4th Quarter 2024

Market Recap

US equities had a strong 2024, pacing the rest of the world. The Russell 2000 index closed the year around 2230 while peaking over 2400 in November.
Bond prices dropped in the 4^th quarter while rates spiked. With Federal Reserve rate cuts priced in, traders expect less cuts than previously predicted heading into the new year as disinflationary progress was slower than expected. 2YR yield ended the year @ 4.24% and the 30YR yield closed @ 4.78%.
Gold prices spiked to see one of the biggest annual gains. Advancing 27% for the year.
Bitcoin and other popular cryptocurrencies have seen strong growth for the year.
US labor markets remain robust as unemployment claims have been low and job openings continued to rise in 2024.

We continue to remain overweight equities vs bonds. US equities are poised for a bull market in 2025 with anticipation of looser regulations and lower taxes stance from the Trump administration. Bonds remain limited in growth compared to equities.
While interest rate cuts are expected in 2025, the number of cuts by the Fed has been tamed. Persistent inflation exists and the Fed seems reluctant to ease rates too far. There is a lag effect of monetary policy, and we will be patient as the Fed navigates through economic data. Global inflation expected to slow in 2025 as global central banks are set to continue easy monetary policies.
Strong labor markets and the resiliency of the US consumer can be a catalyst for US productivity, we expect these trends to continue into 2025.
Economic and political changes are to be expected with a change in the White House. We will monitor these policy changes as they present themselves.