2024: A Year for the Books
As 2024 draws to a close, we wanted to take a moment to reflect on what has been a remarkable year in the markets. After a strong 2023, many investors expected a pause or pullback in 2024. Instead, the U.S. stock market has continued to climb, with the S&P 500 posting double-digit gains for the second consecutive calendar year.
The year has been defined by a few major themes: the ongoing AI revolution, the long-awaited start of the Fed's rate-cutting cycle, the U.S. presidential election, and continued economic resilience. Through it all, our disciplined, long-term approach has served our clients well.
What's Next in 2025
Looking ahead to 2025, we see a number of factors that will shape the investment environment:
- Tax policy. With the new administration and Congress, there may be significant changes to tax policy in 2025. We will be watching closely for any legislation that could affect our clients.
- Interest rates. The Fed is expected to continue cutting rates in 2025, which should be supportive of both stocks and bonds.
- AI maturation. We expect AI to move from hype to deployment in 2025, with more companies integrating AI tools into their operations.
- Geopolitical risk. Ongoing conflicts in Ukraine and the Middle East remain a wildcard for global markets.
Whatever 2025 brings, we are committed to being your trusted partner in navigating the financial markets. Thank you for your continued trust in Tilia Fiduciary Partners.
From our entire team, we wish you and your families a wonderful holiday season and a happy new year.
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