Happy New Year and Welcome to our January 2025 Market Update!
What a Year! The S&P 500 gained 25% in 2024, and while it paused here and there, I feel there were not any significant corrections to speak of.1
Within large cap U.S. stocks, growth did the best. This can be evidenced in the Russell 1000 Growth Index having increased 33.4% last year, while its counterpart (the Russell 1000 Value) rose “only” 14.4%.1
The U.S. strongly outpaced international and emerging markets as they returned a meager 4.4% and 8%, respectively.1
After all of what I believe were great gains in the markets, some of the shine felt like it was taken off 2024’s return after a four-day skid to the end of December.2
I believe the markets do face some uncertainty and that may not be bad. For example, it looks like interest rates on longer-term debt may remain higher for longer. That is good if you’re a fixed income investor because you may receive a higher yield. We are also watching a much more uncertain Federal Reserve and how they feel about short-term rates and inflation. Last but not least, we’re going to see a whole new administration enter the government, and I don’t believe we really know what decisions may affect the markets.
One thing I’m happy to share from experience, it’s easy to get bogged down by headlines. I feel pullbacks are normal and may even be healthy. Overall, I’m optimistic for things in 2025. This belief is based on continuing strong corporate profits, hopes of lower taxes and productivity gains.2
Over the next few months, I’m looking forward to seeing you as we discuss your portfolios and please let us know if you have any questions or feedback in the meanwhile. Until we talk next, thank you for your continued support and enjoy a wonderful 2025!
Successfully,
Tim Truebenbach, CFP®
Senior Vice President – Financial Advisor
Disclaimers and Sources
1 Source: LPL Research, Daily Market Update, 1/2/2025, Jeffrey Buchbinder, CFA
2 Source: LPL Research, Daily Market Update, 1/3/2025, Jeffrey Buchbinder, CFA
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.
The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.
The S&P 500 is a stock market index tracking the stock performance of 500 of the largest companies listed on stock exchanges in the United States. Indexes are unmanaged and cannot be invested in directly. (102-LPL)
The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. (92-LPL)
Precious metal investing involves greater fluctuation and potential for losses.
Stock investing includes risks, including fluctuating prices and loss of principal.
The fast price swings in commodities will result in significant volatility in an investor’s holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors. (122-LPL)
LPL Tracking # 678201 - True PW Market Video Script - Jan 2025
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