November was an eventful month for investors as the S&P 500 moved higher, finishing the month up almost 6%, and is now up roughly 26.5% for the year. (YCharts) The biggest market mover was the US election, while we also had a busy month of positive corporate earnings, and a Fed rate decision (0.25% rate cut).

Post election, we made adjustments to portfolios to try to take advantage of areas that we feel may have sustained tailwinds given the likely policies from a Trump administration and Republican Congress.  Below we’ve highlighted a few areas of the market we like moving forward.

November was an eventful month for investors as the S&P 500 moved higher, finishing the month up almost 6%, and is now up roughly 26.5% for the year. (YCharts) The biggest market mover was the US election, while we also had a busy month of positive corporate earnings, and a Fed rate decision (0.25% rate cut).

Post election, we made adjustments to portfolios to try to take advantage of areas that we feel may have sustained tailwinds given the likely policies from a Trump administration and Republican Congress.  Below we’ve highlighted a few areas of the market we like moving forward.

October was a steady month for investors as the S&P 500 drifted slightly higher throughout the month before pulling back to close about 1% lower.  Stocks ended the month with the S&P 500 up almost 20% for the year. (YCharts)

The 10-year Treasury yield also rallied during the month, jumping from 3.81% to 4.29%, as interest rates moved steadily higher for the first time since the end of April. (YCharts) This move is notable as it comes after the Fed cut rates in September which leads us to ask:  why did rates move higher, and what does that mean for the future?

September looked a lot like August as stocks pulled back at the beginning of the month on fears of a slowing economy, before rallying as the major indices hit new all-time highs.  The S&P 500 enters the fourth quarter up over 20% for the year.  (YCharts)

Investors had been eagerly anticipating September’s Fed meeting as most expected the Fed to begin cutting rates.  The Fed didn’t disappoint, as they cut the Fed Funds rate by 50bps.  By choosing a larger cut (50bp vs. 25bp) the Fed demonstrated that they intend to take a strong stand as they shift their focus from fighting inflation to supporting the labor market and economy.   

As we move toward the end of the year here are a few areas that are important to keep an eye on:  

Last month was a choppy one as stocks sold off sharply at the beginning of the month amidst increasing concerns of a weaker labor market, slowing economic growth, and the potential unwinding of the yen carry trade.  This pullback didn’t last long as we got some better economic data, and an update from the Fed, as the S&P 500 rallied to close the month about 2% higher. (YCharts)

We felt that the pullback was likely indicative of normal market volatility, and not the sign of an imminent recession.  During times such as these it’s important to avoid making decisions based on emotion.  One of the ways we seek to make volatility manageable is by making sure your asset allocation is in line with your goals, time horizon, and risk tolerance. 

The rally toward the end of the month was capped off by Fed Chair Powell’s speech at the Fed’s Jackson Hole symposium.  Below, we’ve highlighted three observations from that meeting:

We started the second half of the year with a little market volatility as investors digested a number of significant headlines in July.  The S&P 500 rallied strongly in the first half of the month before pulling back, but still closed about 1% higher for the month, and is now up almost 16% for the year. (YCharts)

We believe that the volatility we’re seeing in markets is a normal, and healthy, characteristic of a bull market and aren’t making any major changes to portfolios at this time given our base case that the economy avoids a meaningful recession, corporate earnings remain resilient, and stocks move moderately higher.  Of course, our active approach means that as economic data evolves, we’ll be ready to make adjustments to our portfolio positioning.

This month we’re going to highlight three data points that reinforce our outlook that an imminent recession is unlikely.

Each year, the Trustees of the Social Security and Medicare trust funds provide detailed reports to Congress that track the programs' current financial condition and projected financial outlook.

Many near-retirees view their upcoming retirement as a time to kick back, relax, and make memories with loved ones. But for some, retirement may offer the opportunity to work for yourself instead of working for someone else.

It is not just a routine task, but a strategic necessity to align with your goals.

As we reach the halfway mark of the year, it's a prime opportunity to assess your financial planning goals and review your investment portfolio. This mid-year check-in is essential for ensuring that you stay on track to meet your financial objectives.

Many dream of working toward early retirement, but getting there generally doesn’t happen by accident. Retiring early requires financial independence that can last for decades, but that is much easier said than done. To get there requires taking steps and staying focused. Consider these seven ideas to help you prepare for an early retirement:

1. Start Early