4Q24 Market Insights | Beyond the Numbers

• Major market indexes had mixed results in the fourth quarter as the US dollar surged 7.6%, inflation concerns resurfaced (slightly), and bond yields rose. Nonetheless, stocks showed strong gains for the year—most notably within the United States. International stocks lagged for the year, mostly due to foreign currencies declining relative to the US dollar.   

• The S&P 500 Index finished the year trading at 21.5 times expected 2025 earnings. While this is above the 30-year average of 17, the weighting to technology stocks is higher than it’s ever been. These companies historically command a higher valuation. US small/mid cap and international companies have much more reasonable valuations and may have an easier time exceeding expectations going forward. Dividend-paying stocks also have reasonable valuations.

• Bonds ended the year with a 1% gain as inflation eased to around 3%, though it remains persistent. High-yield bonds stood out, delivering an impressive 8.2% return due to strong demand for yield and their shorter-term nature. Unlike government and investment-grade debt, high-yield bonds are less affected by inflation and more influenced by corporate fundamentals.   

• Research Highlight: Looking ahead to 2025. Global central banks are likely to cut interest rates and support economic growth. There is robust capital investment in artificial intelligence, power and energy, security, and robotics. Markets know this, which is why we’re seeing elevated valuations—especially in US large cap companies. We expect volatility and more modest returns as markets and economies normalize. Ultimately, we’re dedicated to strategic diversification to navigate market fluctuations and drive long-term growth.
  

2024 Market Performance (Through 12/31/2024)

Journey Beyond Wealth (“JBW”) is an Investment Advisor registered with the SEC. All views, expressions, and opinions included in this communication are subject to change. Registration of an investment advisor does not imply a certain level of skill or training. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Please contact us if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.