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Springing into the New Year
By Brett Lozowski
Spring time is the season of new life. The days are getting longer, the weather is getting warmer, and the flowers are beginning to bloom. Even the financial markets have reawakened with another great quarter to start the year!
The US stock (S&P 500 index) continued to surge returning 10.5% to start the year springing the US stock market to all-time highs. The bond market held relatively steady down 0.7% to start the year. Despite the slow start, bonds are still building off their strong finish in 2023 (up 5.6% in 2023).
What has given the financial markets new life? Investors cheered as the Federal Reserve indicated the possibility of three interest rate cuts in 2024. Despite short term spikes in inflation, investors have also been comforted that long term inflation continues to improve.
While we have enjoyed the financial markets growth this year, it is important that we remain vigilant of spring’s storm clouds. A resurgence in inflation, unemployment, or higher interest rates for longer than expected could cause the markets party to get rained out.
We unfortunately can’t predict if this spring is going to full of new life or stormy for financial markets. Whether we get bright and sunny days or a dark and stormy spring, we will continue to rebalance portfolios to make sure you are in line with your Investment Policy Statement, and you are only taking the necessary risk to have a successful financial plan.
So, go out and enjoy this lovely weather!
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