The markets have been on quite a run. November was a standout month, marking 10 positive months out of the past 12. The Federal Reserve continues to lower interest rates, which the market seems to enjoy. Interestingly, the Fed typically lowers rates when the economy is slowing, and history shows they often act too late to avoid a slowdown. However, at the moment, they seem to be—using a little jazz lingo—“in the pocket” (just right). That said, the economy still shows signs of slowing, so we may see rates drop even further.

Looking ahead to 2025, there are some mixed signals. While the market has been strong, there are challenges: high mortgage rates and declining home purchases, ongoing economic slowing, and talk of potential government spending cuts, which could dampen growth. However, there are also positives: the market seems optimistic about possible tax cuts and reduced regulation, and the Federal Reserve’s current approach might help turn job losses into job gains, boosting economic momentum.

Consumers are in good shape right now, confidence is high, and the treasury yield curve is no longer inverted—historically a positive sign. The market often looks forward, and its strength today might be pointing toward brighter days ahead.

That said, 2025 could bring more volatility. Now more than ever, it’s essential to ensure your portfolio is well-aligned with your goals and risk tolerance.

As we close out the year, I encourage you to reach out if you have any questions or just want to chat about your plans for the future. Wishing you and your loved ones a joyful holiday season and a fantastic start to the new year!