“You Retire Once… I Help People Retire Everyday”
By virtually all measures, 2024 was a spectacular year for the stock market.
Hot on the heels of a strong 2023 which successfully reversed an oversold cyclical bear market of 2022, 2024 rewarded investors on the continued developments of easing inflation, steady economic growth, a resilient labour market, and central banks (particularly here in North America) welcoming a more accommodative monetary policy.
While the broad U.S. market, as noted by theS&P 500, Nasdaq Composite and Dow Jones Industrial Average, had an incredibly strong year, Canada was also along for the ride returning 21%. Outside of North America, while returns were ultimately positive, although were much more muted in comparison.
As it pertains to the most important, analyzed and watched stock index to investors, the 25% return in 2024 on the S&P 500 capped off back-to-back 20% years which is reasonably rare. While it’s true good years tend to cluster, that feat has only happened 8 times since the end of WW2. Naturally, investors might wonder if that’s bearish for the following year. Well, according to history, it’s not. Of the 8 times the index has had back-to-back 20% gains in the stock market, the very next year was positive 6times. A 75%-win rate with an average return of 12.5%. That is good.
Now we know past performance is no guarantee of future results, but when the stock market is doing well, it tends to continue to do well. Which raises the question, “Why is the stock market doing so well?”
Click below and open the attachment to read my findings as I discuss that question and much more in this special edition of ‘Market Perspectives’. Furthermore, I will dig further into recapping some lessons learned in 2024 and provide some useful tools, visuals, and reminders for investors as we navigate into 2025 that will undoubtedly bring its own storylines.
My commitment to you, a valued investor and partner, will always be to continue to share my opinion and provide context of what is really happening in the economy and financial markets through both the good and bad times. Providing timely insight helps clients become well informed, better educated, and ultimately successful long-term investors.
Regardless of the path ahead, you can be confident that you have an investment professional in your corner who is committed to your journey every step along the way.
Thanks for reading. AP
