2024 Stock Market Performance Summary
2024 was a remarkable year for the stock market, with major indices reaching new heights. The Nasdaq Composite surged by 30%, the S&P 500 climbed over 23%, and the Dow Jones Industrial Average rose by 13%. The Federal Reserve’s first interest rate cut in four years, strong corporate earnings, and a changing political landscape contributed to this bullish trend. The “Magnificent Seven” tech stocks, including Nvidia, Tesla, Alphabet, Amazon, Apple, Microsoft, and Meta, played a significant role in driving market gains.
Key Investment Risks for 2025
- Trade Wars: Escalating protectionism and its impact on global supply chains remain a significant concern.
- Inflation: Persistent price pressures and the uncertain trajectory of monetary policy responses could pose challenges.
- Equity Sector Concentration and High Valuations: The dominance of a few sectors or companies could pose systemic risks if valuations falter.
- Geopolitical Tensions: Ongoing geopolitical issues, such as the Middle East crisis and tensions around Taiwan, could impact market stability.
Key Investment Opportunities for 2025
- Technological Innovation: Continued advancements in artificial intelligence and other technologies are expected to drive growth, particularly in the tech sector.
- Emerging Markets: Non-US equity markets, especially in emerging regions, offer compelling relative valuations.
- Mergers and Acquisitions (M&A): Increased M&A activity could lead to a more dynamic market and broader equity engagement.
As we move into 2025, investors should remain vigilant and adaptable, balancing risks and opportunities to navigate the evolving market landscape.
Finally, the transition to the Altruist Financial LLC platform is complete. One benefit is the Cash Account Altruist offers. It is FDIC-insured and currently yields 4.0% with daily liquidity. It can hold excess cash from non-retirement accounts, or you can connect it to your bank account to earn higher interest or pay investment management fees on retirement accounts at Altruist (rather than use funds from inside the IRA account).
Data source: Morningstar.com
Past performance is not indicative of future returns. Investing involves risk, including loss of principal. If you don’t know what you’re doing, please seek professional help. Bonus: This applies to many things other than investing, too.