As we wrap up the third quarter of 2024, I wanted to take a moment to reflect on what’s been a pretty eventful year for both the stock market and the economy. As always, our goal at Adams Wealth Partners is to provide you with a clear, thoughtful outlook as we navigate both the opportunities and challenges ahead.

1. 2024 has been a year of resilience in the stock market, but also plenty of volatility. The S&P 500 is up about 20% year-to-date, driven by better-than-expected corporate earnings and strong performance from the “Magnificent 7” stocks that have continued their momentum from 2023. That said, volatility isn’t going away, with ongoing geopolitical tensions and the Fed’s decisions still moving the market in the short term. For long-term investors—like we coach all of our clients to be—it’s key to stay disciplined and remember that these ups and downs are part of the journey. This year is another reminder of the importance of diversification and sticking to your personalized financial plan.
2. The U.S. economy has shown remarkable resilience in 2024, but it hasn’t been without its challenges. Inflation has gradually cooled, now below 3%, down from the highs of 2022 and 2023. Heading into Q4, all eyes are on the Federal Reserve. This moderation in inflation has allowed the Fed to start what we believe will be a rate-cutting cycle through the end of this year and into 2025. This should provide some much-needed relief for businesses and consumers. But, as always, if inflation picks back up or we face unexpected economic shocks, the Fed may need to adjust course. Many economists expect growth to slow further into 2025 as the effects of tighter monetary policy work their way through the economy. We’ll keep a close eye on inflation trends and wage growth, both of which will play key roles in future Fed decisions.
3. Job growth continues to be strong, though it’s something we’re watching closely. Consumer spending, while tempered by higher costs, remains a main driver of economic growth. The housing market has cooled compared to a couple of years ago, but with rates likely coming down, we could see a quick rebound, especially with the ongoing shortage of homes across the nation. The strong labor market, along with steady consumer demand and business investment, is helping to keep the economy stable for now.
4. This year’s presidential election season is also upon us. As we’ve coached, election years tend to bring more volatility as investors react to policy uncertainty. The market is typically more focused on the perceived economic impact of policies rather than which party is in power. Historically, while elections can cause short-term swings, markets tend to stabilize once the results are clear and policy directions are understood. Staying focused on long-term goals and not reacting impulsively to the political noise is essential during these times.

At Adams Wealth Partners, we’ll be closely watching the political rhetoric and any potential changes around taxes, spending, and regulations, especially in sectors like healthcare, energy, and technology. Remember, markets usually recover and find their footing regardless of who wins, but these transition periods can bring both risks and opportunities.

While uncertainty remains in both the markets and the economy, we believe that with a solid plan and a long-term perspective, our clients are well-positioned to navigate whatever comes next. We’re committed to giving you the insights and guidance needed to manage your financial future with confidence.

As always, if you have any questions or concerns, we are here for you! And if you are not a client but would like to learn more about how we may be able to help please let us know!

Opinions expressed in the attached article are those of the author/speaker and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.  Past performance may not be indicative of future results. Prior to making an investment decision, please consult with your financial advisor about your individual situation. The forgoing is not a recommendation to buy or sell any individual security or any combination of securities. The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.