Q2 2024 Market Commentary
Markets have been experiencing a heat wave recently, with stronger than usual growth over the past twelve months. While that growth continued in the third quarter, patterns shifted and a new array of sectors helped lead the broad market higher.
Rather than measuring debt as a percentage of GDP, which is primarily an income measure, measuring debt against total assets paints a far more solvent picture.
In response to recent years of high payouts, particularly for wildfire losses, insurance companies have declined to renew policies at a rapid clip and stopped underwriting in high-risk areas of California. This has led to much higher rates of enrollment in the FAIR Plan, which is only meant as a bridge until other insurance solutions became available.
Whether in planning, investing, or parenting, the best outcomes typically arise when you remain focused on the bigger picture rather than the swirl of daily headlines.
Q2 2024 Market Commentary
While increases in prices, temperatures, and political headlines have been quite noticeable, we have also been monitoring areas of the market and economy that have been on a cooling trend over recent weeks and months.
As we continue to rely on technology to make our lives more convenient, our digital asset landscape is becoming more relevant than ever. Including language in your estate plan that covers digital assets is an increasingly common practice to provide clarity over who has legal authority.
The exciting potential growth of artificial intelligence and hyperscale computing capability should account for the logistical and environmental challenges of expanding infrastructure to handle the dramatic increase in energy demanded by powerful chips.
Even though stocks haven’t traditionally done as well from May through October, they still tend to go up, suggesting that staying fully invested has been more reliable than attempting to time the market.
While overall spending remains strong, early cracks are emerging, suggesting that consumers are feeling the fatigue after four years of inflation pressures.
Measurement has historically been a catalyst for innovation, and companies concerned with environmental impact know that while measurable change is incremental, progress made is real.
Q1 2024 Market Commentary
The collapse of the Francis Scott Key Bridge, while devastating, did not paralyze the nation's economy; similarly, a diversified portfolio is structured to absorb volatility without jeopardizing overall performance.
AI has the potential to transform industries and reshape the way we live and work. It also carries significant risks for specific professions and our broader social fabric, presenting challenges for policymakers and regulators.
Even when you have sufficient assets to cover the cost of college, it doesn’t automatically mean that now is the best time to use them. There are still timing considerations that can significantly impact both taxes and liquidity. One strategy to consider in these scenarios is having your child take out student loans.
When building your portfolio and saving for retirement, hitting singles and doubles is the safer, lower-risk route. It's the singles and doubles that win the game. Home runs are exciting, but good defense and strong pitching carry teams deep into the post season.
In honor of our team member Ariana Alisjahbana welcoming her first child this week, we are rerunning an article from June 2022 that highlights financial considerations to keep in mind as you celebrate this next phase of life. Congratulations to Ariana and her growing family!
Earnings reports include three key financial statements: the balance sheet, the income statement, and the cash flow statement. When a company announces its quarterly results, investors immediately compare the actual results to what financial industry analysts had estimated.
Even while tuition bills seem far off in the future, 529 plans can be a powerful tool which can help parents establish the habit of saving early and ease some of the financial and psychological stress that can arise as college enrollment approaches.
Over the past two decades, national commitments at global climate conferences and an array of new regulations have pushed companies to measure and publicly share information about the environmental impact of their operations.
Q4 2023 Market Commentary
The strong rally over the final two months of 2023 has led to the question of whether potential 2024 price gains may have been pulled forward. To some extent, we would say yes. Stock valuations aren’t unreasonable given where interest rates are, but they are pricing in a strong probability of several interest rate cuts in 2024.
History indicates that when cardboard prices jump higher, the economy is revving up. Some analysts have said that it is too soon to tell whether price increases will persist or if they are a one-time adjustment in a retail market still reeling from the unique circumstances of the pandemic.