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Market Review: Riding the Wave
A republican victory fueled a rally in the U.S. equity markets in anticipation of pro-business policies such as potential deregulation and tax cuts. The U.S. dollar appreciated, reflecting expectations of inflationary fiscal policies and potential shifts in Federal Reserve actions, and the Federal Reserve and Bank of England cut rates by 25 basis points, citing a need to support economic growth amid moderating inflation.
November 2024 Market Recap
The Federal Reserve cut its policy rate by another 0.25% in November. U.S. equity markets rallied as investors received some clarity following the presidential election, and REITs ended the month higher, benefiting from the equity market tailwind and a slight decline in interest rates.
October 2024 Market Recap
Interest rates spiked during the month, a sharp reversal from the third quarter. Equity markets declined across regions, with U.S. large cap outperforming, and a negative month for REITs was primarily driven by the rising interest rate environment, as well as the broader beta to the equity market.
Quarterly Considerations - Third Quarter 2024
The Federal Reserve has embarked on the latest cutting cycle, with an initial cut of 50 basis points at its September meeting. Financial markets, on average, have performed well following the onset of an interest rate cutting cycle, and market volatility will likely remain elevated as we head into the presidential election.
September 2024 Market Recap
The Federal Reserve cut rates by 50 basis points during the month, leading to a rally in bond prices as investors anticipated lower future interest rates. U.S. stocks rose due to investor optimism surrounding future rate cuts, improving economic data, and strong quarterly performance, and REITs had a favorable month.
Shifting Sentiment at Summer Summit
Inflation improvement and weaker economic data shift Fed sentiment
August 2024 Market Recap
The Federal Reserve acknowledged a cooling labor market and softening inflation at its Jackson Hole summit, indicating its willingness to shift policy. Domestic equity market performance was mixed with large cap positive and small cap negative, and REITs had a positive month as interest rates declined.
Crescent Wealth Management has been recognized by Inc. 5000 2024 list of America’s Fastest-Growing Private Companies for the Third Year in a Row
Crescent Wealth Management Ranks No. 1091 on the 2024 Inc. 5000 Annual List
July 2024 Market Recap
Softening inflation and signs of the labor market slowing sent interest rates lower during the month. Market leadership shifted during the month as all eyes remain on the Fed and the possibility of a September rate cut, and REITs had a favorable month.
Quarterly Considerations - Second Quarter 2024
The U.S. Core Consumer Price Index fell throughout the quarter from 3.8 to 3.3 percent, the lowest since April 2021. Investors complacent in cash may miss potential total return opportunities in core fixed income, and concentration in U.S. large cap markets continues to support returns, with nearly half of the S&P 500 Index constituents underperforming during the quarter and generating negative average returns.
June 2024 Market Recap
Despite continued volatility, fixed income markets posted positive returns as rates fell slightly during the month. U.S. markets were mixed in June. Concentrated leadership and hype around artificial intelligence benefitted large cap while small cap declined, and REITs were positive during the month on expectations of declining rates.
Crescent Wealth Named as one of Atlanta’s Largest Life Insurance Agencies for the third year in a row.
We are honored to be named as one of Atlanta’s Largest Life Insurance Agencies by the Atlanta Business Chronicle for the third year in a row. We’d like to especially thank all of our partners, staff, and advisors who have been instrumental in our growth and success.
May 2024 Market Recap
Fixed income volatility continued in May as markets continued repricing expectations for the timing of Fed rate cuts in 2024. U.S. markets were positive in May, and REITs were positive during the month.
Patience & Pragmatism
A fixation on the direction of interest rates continues to drive prices in the short term, including in May. However, we take this opportunity to step back from the short-term focus on rates and discuss the findings of our latest long-term study on the efficient allocation of active and passive investing. Notably, 92% of 10-year top-quartile managers spent at least one 3-year period in the bottom half of their peer group, highlighting that success is not linear.
Market Review: Ripple Effects
Markets repriced in April on “higher-for-longer” rates pushing longer duration fixed income and duration sensitive equities lower. Escalating conflicts in the Middle East have led investors to question what impact expanded conflict may have on their portfolios. While these events capture our attention, their fundamental impact on markets tends to be short-lived.
April 2024 Market Recap
Interest rates rose as market expectations for “higher-for-longer” Federal Reserve policy grew. U.S. equity markets fell in April as investors digested the greater likelihood of the Fed keeping its interest rate target elevated, and the rising interest rate environment and poor equity markets negatively impacted the REIT market during April.
Quarterly Considerations - First Quarter 2024
The S&P 500 Index reached new highs in the first quarter and valuations moved higher. Profit margins have been trending lower as input costs (higher rates and higher wages) have moved higher. Fixed income valuations look favorable relative to equities and with expected rate cuts on the horizon, the expected return prospects for fixed income look attractive.
March 2024 Market Recap
Fixed income markets regained some ground in March. Equity markets were positive across regions and continued their year-to-date climb higher, and REITs were positive during the month as interest rates remained range bound and the outlook for rate cuts later in the year persisted.
February 2024 Market Recap
Fixed income volatility continued in February as markets repriced expectations for the timing of Fed rate cuts in 2024, going from five expected cuts to three, U.S. markets were positive in February, and REITs were positive during the month.
Wintery Mix Hits Markets in January
Markets were mixed in January, with U.S. large cap equities leading the way while non-U.S. equities and fixed income produced lackluster returns. Market sentiment shifted and optimism on the potential for a soft-landing grew. Economic data has delivered above expectations of late, but potential headwinds remain.