With the election just one month away, the markets are adjusting to what is historically a period of heightened volatility.
Since September 1st, the S&P 500 has shown relative stability, despite modest pullbacks in sectors like Healthcare, Consumer Staples and Financials.
In a significant move last month, Federal Reserve Chair Jerome Powell announced a .50 percentage point rate cut in response to continued signs of easing inflation. This is a pivotal step, signaling the Fed’s willingness to provide support to the economy as it seeks a "soft landing" amidst ongoing uncertainties. The rate cut comes after inflation data confirmed a continued downward trend, and we anticipate this could be a positive tailwind for stocks in the coming months.
Looking forward, we remain optimistic about the market's long-term prospects. Valuations across several sectors have moderated, and with the Federal Reserve likely to have one more rate cut this year, we believe the groundwork is being laid for a strong finish to 2024 and positive momentum going into 2025.
"In sum, policy normalization has now begun, more cuts are coming and despite a slightly larger cut to begin with, easing will still be gradual (barring a more material slowdown in the economy)."
One of the ways we can help prepare for whatever the future might hold is by utilizing our comprehensive CLEAR Advice Loop financial planning process. October is National Financial Planning month, and we feel very strongly that a well-built and regularly reviewed plan is one of the best investments of time you can make. This process takes you and your Purus team through both the financial and non-financial factors that play a role throughout your life. It has been our experience that our clients who have taken the time to go through this process seem to approach big transitions in life (new babies, new employment, moving, retirement, etc.) with more confidence than those who don’t. We believe this is because a good financial plan can convert what is traditionally a very uncertain future into a map for a more foreseeable road to success.
Check out the CLEAR Advice Loop educational piece in the link below for an in-depth description of our Purus financial planning experience. If you want more information on the process, or if you have any other questions, please reach out to your Purus Advisor.
"China's share of U.S. imports peaked at 22% in 2018 during the U.S.-China trade conflicts and sits at 11.5% as of June 2024.
Rising geopolitical tensions, pandemic-related disruptions, and tariffs concerns are prompting multinationals to reassess their reliance on China. Many are adopting a 'China+1' strategy or favoring nations with stable political ties and proximity to key markets. But where are they relocating, and how quickly is the trend unfolding?"
"Historical examples, such as the 2002 and 2015 West Coast port strikes, show that although the shutdowns were short-lived, they had meaningful impacts on exports."
As the year comes to a close, it's the perfect time to ensure you're still on track toward achieving your financial goals. It's amazing how quickly the year can fly by, but there's still plenty of time to make meaningful progress. To help you stay on course, click the link below to access your Purus Year-End Checklist.