Market Outlook November 29, 2024

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The shortened holiday trading week has not slowed the volatility of the market.

Major Index Performances (as of Wednesday 1:00 pm):

• S&P 500: The benchmark index rose 0.4%
• Dow Jones Industrial Average: The Dow increased -1.01%
• Nasdaq Composite: The index is flat
• Gold: The Precious metal fell -1.8%

Historical Holiday Returns: Historically investors get spoiled this time of year with the “Santa Clause” effect, a time where the market historically performs well through the holidays. The S&P 500 averages a 1.46% return from Thanksgiving through the end of the year, with a median return of 1.70%. The market has risen 75%-80% of the time. While this is the historical trend, it’s important to remember that past performance does not guarantee future results.

Tech may be losing steam:  Tech giant Dell reported disappointing earnings Wednesday after the closing bell. shares are trading down 11%. Artificial Intelligence bellwether Nvidia is down 6% for the week. Enthusiasm and “FOMO”( Fear of Missing Out), helped push these and other tech stocks to all-time highs, with outsized multiples of earnings.

From our perspective, this is why we use a disciplined approach to investing with rules that dictate our trading. In our opinion, this prevents rash decisions. Investing is long-term and requires patience, and a solid plan.  We are optimistic about 2025 and foresee a mostly fully invested stance as the economy plugs away. Notwithstanding skirmishes and other global challenges, we reckon the new year will bring substantive changes that bolster the U.S. economy.

Have a wonderful Holiday Weekend

Your portfolio management team.