Happy New Year!
The past 75 days have been quite eventful. Several clients have inquired about our investment approach for accounts not held at Schwab. To clarify, our investment strategy has remained unchanged since my last email on August 22, 2024: we have maintained a 100% long position throughout the market volatility experienced in November and December.
A brief recap:
- Post-Election Rally: Following the November 5th election, the market experienced a significant upward movement, often referred to as the “Trump rally.”
- December Volatility: On December 18th, a statement from Federal Reserve Chairman Powell negatively impacted investor sentiment, resulting in a sharp 3.26% decline in the S&P 500 index in a single day.
- Recent Market Trends: The market has since rebounded, and the S&P 500 index currently stands at 607, just one point below its all-time high of 608 reached on December 6th.
The prevailing sentiment among market commentators is that 2025 will likely be a favorable year for the market.
I strive to keep you informed about market developments. Please do not hesitate to reach out if you have any questions.
Sincerely,
Jack