Navigating 2024

As the close of 2024 approaches, I want to pause and reflect on the remarkable year we’ve experienced—one shaped by transformative events, economic shifts, and enduring lessons. This year has underscored the intricate connections between global dynamics and the financial choices we make personally.

Economic Landscape

2024 has been a year of recalibration for the global economy. Central banks, led by the Federal Reserve, worked tirelessly to strike a delicate balance between controlling inflation and fostering growth. While early rate hikes reminded us of the Fed’s role as a disciplinarian in times of excess, the eventual rate cuts signaled the ongoing effort to nurture sustainable growth. Inflation remained above the 2% target, a sobering reminder of the complexity of the path ahead.

For us, these developments highlight a timeless principle: the importance of maintaining balance. Just as the Fed balances growth and stability, so too must we balance optimism with preparedness in our financial strategies.

Market Movements

The equity markets this year reflected a similar tension. January’s optimism, driven by technological innovation and breakthroughs in artificial intelligence, gave way to springtime volatility sparked by renewed interest rate concerns. Yet, sectors such as energy and consumer staples provided a steadying hand, reinforcing the value of diversification as a cornerstone of sound financial planning.

Meanwhile, the bond market—long in the shadow of equities—stepped into the spotlight. Yields on Treasuries reached multi-decade highs, offering compelling opportunities for income-focused investors with the patience to navigate near-term volatility. These moments remind us that market cycles create windows for growth, rewarding those who remain engaged and intentional.

Global Perspective

Global developments shaped not only markets but also priorities. The continuing conflict in Eastern Europe drove energy prices higher early in the year, reinforcing the importance of energy independence and investment in renewables. Simultaneously, China’s uneven economic recovery created ripples across supply chains and commodity markets, emphasizing the importance of agility in responding to global shifts.

The Role of Technology

In contrast to the challenges of the broader economy, technology stood out as a bright spot. The ongoing evolution of AI and automation, heralded as the “Fourth Industrial Revolution,” brought breakthroughs ranging from healthcare innovation to supply chain efficiency. For those with a long-term vision, these disruptions signal opportunities to harness innovation for both progress and profitability.

Timeless Principles for the Road Ahead

Amid uncertainty, certain financial truths endure:

1. Patience as a Superpower: Volatility is inevitable, but staying invested through market cycles remains a proven strategy for wealth creation.
2. Diversification as a Safeguard: This year reaffirmed the importance of balance. Bonds, often underappreciated in recent years, demonstrated their enduring value as a stabilizing force.
3. Adaptability as a Strategy: In a world driven by constant innovation and shifting geopolitical realities, flexibility ensures we stay aligned with opportunities while managing risks.

Looking Forward to 2025

As we prepare for the coming year, key questions remain. Will interest rates stabilize? How will global markets adapt to shifting geopolitical landscapes? Will technological advances continue to accelerate transformation at their current pace? While these uncertainties persist, our response remains clear: stay disciplined, focus on long-term goals, and avoid distractions that can derail progress.

Our shared strategy—rooted in discipline, diversification, and forward-thinking—positions us to navigate these challenges and capitalize on opportunities. 2024 demonstrated the power of resilience, the necessity of adaptability, and the enduring value of a thoughtful financial plan.

A Partnership We Value

It is both an honor and a privilege to serve as your partner in navigating these complex times. Your trust inspires us to work diligently and thoughtfully, ensuring that your financial future reflects your values and aspirations. As always, I welcome the opportunity to discuss any aspect of your plans for 2025 and beyond.

Wishing you and your loved ones a joyful holiday season and a New Year filled with health, happiness, and continued success.

In Abundance,

Brandon Hatton
Chief Investment Officer

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