2/12/2024 0 Comments Estate planning binder checklistEnduring this decline was a great litmus test for the ability to stay true to the allocation and trust the historic nature of markets eventual recoveries, which we’re just now starting to see. Prior to 2022, a bad year in fixed income was a 2% decline – much less severe than the double-digit percentage declines across many bond markets in 2022. This was especially jarring to many because fixed income has traditionally been tagged as the “safe” asset in an allocation. While that may seem somewhat wonky, these changes had very real and very severe impacts on fixed income holdings, which endured the worst returns in decades. Re-asses Risk Appetite: Whether we realize it or not, we have witnessed historic shifts in monetary policy the last two years with the Federal Reserve’s aggressive increases in the Fed Funds rate. Realizing this, we believe there are few financial “checklists” and tactics we actually do control which could have a tangibly positive effect on cash flow, balance sheets, and peace of mind. Moving into 2024, economic storm clouds are still on the horizon, but in the coming year, markets will have to digest a presidential election that will undoubtedly be undecided until late in the year, which will leave tax, fiscal, economic, and regulatory policy up in the air.īut all these factors and scenarios have one thing in common: they are out of our control. However, as of mid-December, it appears we have avoided one of the most predicted economic contractions ever. It’s easy to see why many prognosticators were predicting recession this year. To start the year, several economic indicators were already trending negative while the Fed proceeded with aggressive rate hikes to steamroll inflation. As we close 2023 and flip the calendar to 2024, we can look back at generally strong markets in the face of economic and geopolitical uncertainty.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |