Happy Holidays! Welcome to our December 2023 Market Update. Wow, how fast has this year gone?!
When one thinks of all the headlines surrounding rising rates, war in Ukraine and Gaza not to mention dire economic predictions, is seems easy to forget that investments are moving into the final month of the year doing well.
Stocks rose almost 9% in November and enter December up 19% for the year!1
In my opinion, rising interest rates caused headwinds for the markets and now may be largely behind us. As recent as December 1st, Federal Reserve Chairman Powell made remarks that both stock and bond markets look as the cycle is coming to an end. Stocks rose and bond yields fell.2
So what does this mean for investors? Risk on! It is my belief that even if rates remain elevated but stop rising, stocks make a lot of sense. It may also make sense to own bonds that mature out later rather than in the short-run, such as money market funds.
I feel that one of the biggest challenges in the investment world today is how to put money to work in stocks. With such a strong recent performance, it’s quite possible we may see a pullback in prices before moving higher. It’s never fun buying something and seeing it immediately decline!
Fortunately, asset allocation specifically designed for each and every client remains the cornerstone of True Private Wealth’s investment philosophy. This means that if stocks are appropriate for someone, they have enjoyed recent returns in their portfolios.
Now on to my favorite message of this month’s video…I hope you enjoyed the kick-off to the holidays and had a wonderful Thanksgiving. Enjoy the rest of your holiday season and I want to personally wish you a Very Happy New Year!
Yours truly will be working through the month, so please don’t hesitate to reach out with any questions, feedback or just some holiday cheer.
Talk to you next year.
Successfully,
Tim Truebenbach, CFP®
Senior Vice President – Financial Advisor
Disclaimers and Sources
1 Source: Thomson ONE Reuters, 12/1/2023
2 Source: CNBC, Federal Reserve, 12/1/2023
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
All performance referenced is historical and is no guarantee of future results.
All indices are unmanaged and may not be invested into directly.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
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