Insights
Perspectives
Economic Outlook:
Focus on what you can control
Our Economic and Investment Outlook underscores the need for investors to "Focus on what you can control."
1. Create an investment plan that fits your needs/objectives and the risks you are willing/not willing to take
2. Diversify globally within and across asset classes
3. Manage expenses/turnover and taxes using low-cost strategies (“Investing Passively with a Purpose” for Core Wealth"), and
incorporate “Active Management for a Reason,” (if and when applicable)
4 Stay focused & disciplined
5. Periodically rebalance
2. Diversify globally within and across asset classes
3. Manage expenses/turnover and taxes using low-cost strategies (“Investing Passively with a Purpose” for Core Wealth"), and
incorporate “Active Management for a Reason,” (if and when applicable)
4 Stay focused & disciplined
5. Periodically rebalance
We begin the second quarter of 2024 with inflation much lower than peak inflation (9.1%) back in June 2022, a cooling labor market, and positive S&P 500 earnings growth after three quarters of declines.
Economic growth slows but the economy avoids a recession, hard landing and bear market. Leading economic indicators point to slowing growth but not a collapse.
Inflation remains in/around current levels as service sector inflation continues to be stickier and more resilient than expected, and the Fed continues to weigh the risks of maintaining a restrictive stance for too long versus the risks of easing policy too quickly.
All things considered, 2024 looks like a year of slowing GDP growth, single-digit earnings growth and positive single-digit returns across most asset classes with equities leading the way.
There will always be noise and distractions that can challenge one to stay invested with a well thought out asset allocation and investment strategy. There will also be times when many predict market declines with no shortage of compelling arguments for why you should heed those warnings. Doing so in 2023 would likely have done far more harm than good. If one stays focused and disciplined on long-term goals and the fact that a sound well thought out plan accounts for the ups and downs that inevitably occur in markets, one can be better prepared to tune out the noise in the short term (and maybe experience less stress about their portfolio(s) along the way). Those who held that philosophy throughout 2023 were likely rewarded. We think that approach is just as important in 2024 and beyond.