Market Perspectives Q4 2024

In
 / 
by Kieran Osborne, MBus, CFA®, Chief Investment Officer
 / 
November 19, 2024
The Quarterly Brief Newsletter and Market Perspectives for Q4 2024

As we close out 2024, our Chief Investment Officer, Kieran Osborne, offers key insights into the financial markets and economy. Here’s an overview of the market trends and economic outlook shaping the current investment landscape.

Insights from Q4 2024

As we move toward the holidays and the end of 2024, the market landscape presents both challenges and opportunities for investors. Mission Wealth’s latest market perspectives highlight key themes and actionable insights that can help guide our clients through this next year.

Stocks Strong This Year

Stocks have been supported by reduced inflation, the initiation of a Fed rate-cutting cycle, an increased likelihood of a soft-landing economic outcome, the reduction of political uncertainty, and earnings results that came in broadly ahead of expectations.

That said, a repricing of future Fed rate cuts has caused a recent uptick in volatility. Stock market concentration is at historic levels, and many large, mega-cap companies have stretched valuations relative to the remaining stocks in the S&P 500 Index.

Bond Yields More Attractive 

Bond yields have increased because of a more robust economic outlook, the potential for inflation to stay elevated over the near term, and the likelihood of a more measured approach to future Fed rate cuts. With that move, bond yields are relatively attractive, and bond prices may be supported if the Fed continues cutting interest rates (albeit at a more moderate pace).

Economic Update: Sustained Growth Ahead

The outlook for the U.S. economy has been revised higher and is expected to expand by 2.6% in 2024. The labor market has been resilient, and consumer spending has been robust. Economic data has recently surprised to the upside, and the economy is expected to grow above trend before moderating in 2025. Our base case is for a soft-landing economic outcome, with positive economic growth expected for the foreseeable future.

Investment Strategy: A Balanced and Disciplined Approach

While inflation remains above the Fed’s 2% target, it has improved, which may provide cover for the Fed to continue its rate-cutting cycle. The Fed considers current monetary policy as still restrictive but believes it is moving toward a more neutral policy. However, given the ongoing strength in the economy and upside data surprises, the Fed may take a more measured approach to future rate cuts.

Historically, a soft landing and a Fed rate-cutting cycle have been supportive for stocks. However, we are cautious about valuations, which appear stretched, particularly for select mega-cap names. Bond yields are attractive, with many of our preferred bond funds yielding mid- to high-single digits. Moving forward, we believe select alternative strategies offer attractive risk-adjusted return potential.

Download Our Market Perspectives

As we continue monitoring market developments, we focus on long-term fundamentals and disciplined investment strategies. By staying fully invested and avoiding the temptation to time the market, our clients are better positioned to achieve their financial goals, even in the face of short-term volatility.

At Mission Wealth, we are committed to guiding our clients through the complexities of today’s market with confidence and clarity. Our proactive approach ensures that our clients’ portfolios are resilient and poised to capitalize on opportunities that arise from market fluctuations.

We invite you to explore the full Quarterly Market Perspectives report for a deeper understanding of these market insights and their impact on your investment portfolio.

Customized Investment Management Solutions

At Mission Wealth, we develop customized, globally diversified, tax-efficient portfolios tailored to your financial plan and built to stand the test of time. Contact us below for a free portfolio review.
Get Started Today

Investment Advice Fit For Your Needs

At Mission Wealth, we are deeply rooted in an evidence-based investment strategy built on decades of Nobel Prize-winning research. We ignore the media noise and Wall Street hype, relying instead on a long-term approach and proven principles that reward investors over time. For more information on Mission Wealth's investment strategies, please visit missionwealth.com.

To meet with a Mission Wealth financial advisor, please contact us online today or call us at (805) 882-2360.

MISSION WEALTH IS A REGISTERED INVESTMENT ADVISER. THIS ARTICLE IS SOLELY FOR INFORMATIONAL PURPOSES; NO INVESTMENTS ARE RECOMMENDED. NO ADVICE MAY BE RENDERED BY MISSION WEALTH UNLESS A CLIENT SERVICE AGREEMENT IS IN PLACE. 00644061 11/24

Recent Investment Insights Articles

The Quarterly Brief Newsletter and Market Perspectives for Q4 2024

Market Perspectives Q4 2024

November 19, 2024
As we close out 2024, our Chief Investment Officer, Kieran Osborne, offers key insights into the financial markets and economy....
Mission Wealth Market Update 11/7/24

Mission Wealth Market Update 11/7/24

November 7, 2024
All eyes were on Washington this week with the U.S. election and the Fed announcing its interest rate policy. Please see our thoughts below....
2024 Q3 Investor Psychology Commentary – Dealing with Market Volatility

2024 Q3 Investor Psychology Commentary – Dealing with Market Volatility

November 1, 2024
Last quarter, we distilled everything you need to know about markets during presidential elections; this quarter’s theme is dealing with market volatility....