SCOTTSDALE, Ariz. - Dec. 18, 2024 - PRLog -- Trajan Wealth's November 2024 Market Review, by Chief Investment Officer Udayan Mitra, CFA. His insights are below; read the full review here.
November 2024 Market Review
The US Presidential elections resulted in the GOP winning Congress. This change is one large factor that resulted in the following outcomes:
- The Federal Reserve's preferred measure of inflation, the Personal Consumption Expenditure Deflator, recorded a mild rate of 2.3% in October.
- The Federal Reserve reduced the overnight Fed Funds rate by 25 basis points (0.25%) during the FOMC meeting on November 7th.
- Annualized GDP growth for the third quarter of 2024 reached a robust 2.7%.
In November, US equity markets experienced noteworthy gains, driven by several developments:
- S&P 500 Growth: +5.87%
- Russell 2500 Growth: +9.83%
- Bitcoin Monthly Return: +34%
- Bitcoin Price Increase (since end of 2022): From below $20,000 to ~$98,000
We avoid cryptocurrencies due to the difficulty in valuing them reliably, as they lack clear cash flows for valuation.
We see the interest in Bitcoin as speculative trading instead of genuine investing. Our approach focuses on sustainable investments based on observable data like earnings and cash flows.
Return Expectations and Caution
Despite the impressive market performance, we advise tempering future expectations. High returns are rare, and it's important to base projected annual returns on long-term averages rather than recent spikes. Given market volatility, we suggest clients plan for equity growth rates that align with historical performance. This may mean saving more to secure financial goals and ensure adequate resources for retirement.
Implications & Recommendations
To optimally manage your investment portfolios we recommend:
- Focus on long-term goals.
- Implement proactive risk management strategies.
- Avoid large mismatches between assets and liabilities.
- Consider a "home country" bias by overweighting US assets.
About Trajan Wealth
Trajan Wealth, LLC was founded in 2012 by CEO Jeff Junior. Before his 20+ years in the financial services profession, Jeff served in the United States Marine Corps. He continues to lead Trajan Wealth with the utmost service, respect, and attention to detail.
By using low-cost, diversified portfolios under its fiduciary standard and working closely with its investment advisors and estate attorneys within one office, the company provides long-term support for client's retirement needs and estate plans, including wealth accumulation and tax planning strategies. The firm has locations across Arizona, Colorado, Florida, Georgia, Texas, Utah, and Illinois.
For more information or to schedule a complimentary consultation, visit https://trajanwealth.com or call 1-800-838-3079.
Disclaimer:
*Advisory services offered through Trajan® Wealth L.L.C., an SEC registered investment advisor. Legal services are offered through Trajan® Estate, L.L.C. in Arizona and Utah, and independent law firms in other states. Private equity may require accreditation.
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Source: Trajan Wealth
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