From the desks of Stanley Katz & Lauren Madera
HAPPY NEW YEAR!
2023 went out with a bang while 2024 came in with a whimper. All three major US stock market indices posted negative returns for the holiday-shortened week (i.e., DJIA: -0.89%, S&P 500: -1.52%, Nasdaq: -3.25%). In fact, the DJIA snapped a 9-week winning streak. Not sure what the culprit was…maybe a hangover from yearend celebrations? Or a realization that artificial intelligence will not fix overnight all that ails? Having said that, the stock markets yearn to see earnings growth from companies in 2024. Look at Fidelity’s commentary below for some insights.
One other factor that seemed to drive the stock market indices in late 2023 was the anticipation of lower interest rates. This past week’s December employment report may persuade the Federal Reserve to hold interest rates higher for a little longer. Or, in Fed speak, the “punch bowl” will not arrive at the party as timely as expected. Perhaps, J.P. Morgan Asset Management’s “On the Minds of Investors” note below provides a dose of reality.
ClientFYI from ClientFirst: To kick the year off, we are introducing periodic announcements to help inform your financial decisions. The IRS has increased 401k and 403b contribution limits for 2024. The same applies to most 457 plans and the federal government’s Thrift Savings Plan.
• If you are under age 50, the limit is $23,000.
• If you are age 50 or older, the limit is $30,500.
We bring this to your attention in case you would like to adjust the percentage or dollar amount you contribute from each paycheck to your retirement plan. Feel free to contact us if you need help or would like to discuss in greater detail.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Fidelity:
J.P. Morgan Asset Management:
Schwab:
BlackRock:
Thornburg:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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