Market Commentary | Jan 14, 2025
4Q2024 Market Commentary: The Open Window
Michael J. AroestyCFP®
CFP®
“I not only use all the brains I have, but all I can borrow.”
-Woodrow Wilson
In the final days of the year, my family and I enjoyed the beautiful Elk Mountains in central Colorado. Surrounded by the snowy, jagged peaks, I was reminded of the climber’s mantra – “The mountains never end.”
The phrase is intended to humble and inspire, challenging the imagination to figure out how to tackle something so enormous and enduring. It also, however, serves as a cautionary reminder to pace oneself, and to only push for the summit if the conditions allow. Skill, strength, and tenacity are demanded, but so too is evaluating the right temperature, winds, and visibility. Without these in place, the trek can end, quickly.
Looking at year-end market index returns rarely tells the full story. When reviewing the economic, political, social, and geopolitical challenges faced in 2024, the year was marked by many difficult crosscurrents. Declining but persistently high inflation, restrictive monetary policy, hot geopolitical conflicts in Europe and Asia, a weakened but resilient US consumer, and contentious election cycles in democracies across the globe, to name a few. On their own, each posed risk to investors. Taken together, many investors opted to sidestep these risks and sit in cash.
As we always reinforce with our clients, this is why maintaining a long-term view is critically important. By consistently and resolutely focusing on the end objective, whether that be personal, financial, commercial, or professional, the short-term crevasses and cliffs along the journey can be navigated – perhaps not with ease, but certainly with greater clarity – and usually with far greater success.
Click the link above to read the rest of the article.
This material has been provided for general, informational purposes only, represents only a summary of the topics discussed, and is not suitable for everyone. The information contained herein should not be construed as personalized investment advice or recommendations. Rather, they simply reflect the opinions and views of the author. D. B. Root & Company, LLC. does not provide legal, tax, or accounting advice. Before making decisions with legal, tax, or accounting ramifications, you should consult appropriate professionals for advice that is specific to your situation. There can be no assurance that any particular strategy or investment will prove profitable. This document contains information derived from third party sources. Although we believe these third-party sources to be reliable, we make no representations as to the accuracy or completeness of any information derived from such sources, and take no responsibility therefore. This document contains certain forward-looking statements signaled by words such as "anticipate," "expect", or "believe" that indicate future possibilities. Due to known and unknown risks, other uncertainties and factors, actual results may differ materially from the expectations portrayed in such forward-looking statements. As such, there is no guarantee that the expectations, beliefs, views and opinions expressed in this document will come to pass. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. All investment strategies have the potential for profit or loss. Asset allocation and diversification do not ensure or guarantee better performance and cannot eliminate the risk of investment losses.
Michael J. Aroesty
CFP®