• Growth Scare Hits Risk Assets – Weaker economic data, a patient Fed and shifting policy dynamics fueled slowdown fears triggering a broad selloff of U.S. equities, with defensive sectors outperforming.

• Growth Puts Spotlight on Valuations – High-valuation stocks fell more than peers, while value and defensive sectors led. Consumer staples outperformed consumer discretionary by 11%, while Treasuries rallied amid shifting markets sentiment.

• International Extends its Lead – EAFE took another step forward and added to its 2025 lead over the S&P 500, led by EU financial and defense spending along with a cooling of U.S. high valuation stocks.

As 2025 unfolds, we know many of you are feeling uncertain about the markets and what’s ahead. In this special update, we break down the latest trends, including stock performance, the impact of a weakening US dollar, and how we’re managing portfolios to stay resilient. Watch the video for a data-driven look at where things stand and how we’re helping you navigate the road ahead.

Ben Hockema reviews the 2024 performance and looks ahead to 2025, including:

• 2024 Investment Performance

• 4 Reasons to be Bearish

• 4 Reasons to be Bullish

• How to Position Portfolios for 2025 and beyond

• Despite a Federal Reserve rate cut in September, rising inflation concerns and a cooling labor market overshadowed optimism, leading to a cautious market environment in October.

• While October brought challenges, year-to-date returns remain strong, highlighting underlying market resilience despite the month’s turbulence.

• The path to normalized inflation may not be linear, strengthening the case for resilient portfolios in preparation for the road ahead.

Join Ben Hockema to review the investment markets through September 30th, 2024.

• Markets were generally positive in August, despite a tough start to the month as investors wrestled with weakening economic data, geopolitical unrest and global growth.

• Shifting language at the Federal Reserve’s Jackson Hole summit indicated a renewed focus on the employment situation more so than inflation.

• Markets have priced in a first rate cut in September, shifting the question of “when?”  to “how much?”

Ben Hockema reviews the 2nd quarter investment market returns and discusses what might lie ahead for investors.

Key Observations

A fixation on the direction of interest rates continues to drive prices in the short term, including in May. Rates moved lower, pushing rate-sensitive asset classes ahead of their peers.

However, we take this opportunity to step back from the short-term focus on rates and discuss the findings of our latest long-term study on the efficient allocation of active and passive investing.

Notably, 92% of 10-year top-quartile managers spent at least one 3-year period in the bottom half of their peer group, highlighting that success is not linear. We have also added nuance to our review of efficient allocation in markets most likely and profitable to engage in active investing.