Cup of Joe

Markets in September

Pulse of the Market

• Stock Performance in 2024: The market has shown solid performance so far this year. The S&P 500 is up 16.5%, with U.S. small and mid-cap indexes rising by 6% and 9%, respectively. International and Emerging Market indexes have also posted gains in the high single digits.
• Market Volatility: We’ve seen bouts of volatility in April and again from mid-July into August, which is typical for any given year.
• Short-Term Outlook: It’s reasonable to expect the market to move in fits and starts over the near term.

The Case for Stock Growth

• Inflation Decline: Price increases have slowed significantly, easing inflationary pressure.
• Strong Consumer Spending: Despite adapting to higher prices, consumers have maintained steady spending in key sectors of the economy.
• Global Growth: Growth conditions are improving worldwide, offering opportunities for portfolio returns from beyond U.S. stocks.
• Cash Moving to Equities: As we move deeper into a rate-cutting cycle, cash savings become less attractive. We expect more investors to shift some of their cash into assets likely to offer better long-term returns, such as stocks.

Monitoring Investment Portfolios

• Asset Exposure: We are closely examining our exposure to U.S. stocks, international markets, and emerging markets—not just the amounts, but the composition of these exposures.
• Alternative Assets: We’re monitoring alternative asset classes that help guard against significant downturns in the market.
• Bond Fund Strategy: We continue to rely on actively managed bond funds that have performed well in this challenging environment. We’re also monitoring bond allocations to take advantage of the Fed’s shift in interest rate policy.

Stay Invested and Stick to Your Plan

The most important takeaway is to remain invested and committed to your financial plan, which is designed to help you achieve your personal goals.

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Securities offered through Osaic Wealth, Inc. Member FINRA/SIPC. Advisory Services offered through Osaic Advisory Services, LLC (Osaic Advisory). Osaic Wealth and Osaic Advisory are separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth and Osaic Advisory.

By: Joe Gallemore, CIMA®, CExP™

Partner & Director of Investment Management