2024 Market Review
The year 2024 was extraordinary for the economy and the markets. High interest rates, rising unemployment, turmoil in the Middle East, and the ongoing Russia/Ukraine war were some of the many factors that should have signaled economic contraction and a downturn in the stock market. Yet, the opposite occurred. Gross domestic product expanded by 3.1% in the third quarter and 2.9% year over year. Each of the major stock market indexes posted solid year-end gains. Inflation came down. Corporate earnings grew despite the unemployment rate inching higher. While data showed price pressures slowed in 2024, consumers faced the stark reality of the overall high cost of living.
The economy grew in 2024, proving that it could withstand the Federal Reserve's aggressive policy of interest rate hikes from the previous year. Consumer spending remained strong despite rising unemployment, which boosted the overall economy. In addition, increased nonresidential (business) spending, headed by cash-rich technology companies, and solid wage and income growth all contributed to overall economic strength. However, economic conditions were at the top of consumer concerns throughout much of 2024, particularly in the context of the presidential election. Consumer sentiment drooped in December amid weaker assessments of the present situation, while short-term expectations for business and labor saw a sharp decline.
As 2024 ended, there were some positives to consider upon entering the new year. At the conclusion of 2024, Wall Street enjoyed the best two-year run since 1997-1998. If corporate earnings continue to grow, that will bode well for stocks in 2025. Some factors will come into play next year, but how they impact the economy and markets is open to speculation.
International Markets
World stocks are on pace for a second consecutive annual gain of 16%, despite tensions in the Middle East, the ongoing war in Ukraine, Germany’s underperforming economy amidst political upheaval, the downgrade of France’s credit rating, and China’s economic slowdown. For 2024, the STOXX Europe 600 Index rose 6.0%; the United Kingdom’s FTSE advanced 5.7%; Japan’s Nikkei 225 Index gained 10.2%; and China’s Shanghai Composite Index increased 12.7%.
On A Personal Note
Jeff was able to get back to the gym and swimming pool after six weeks off for knee surgery. Activity is still limited but improving every week. Drew and his family spent a weekend in Bradenton Beach in Florida for a soccer tournament. His youngest daughter, Ava, had a great tournament, not allowing a single goal all weekend. His older daughter, Abby, also had a great weekend of getting sunburnt on the beach! Chris spent the holidays enjoying family and friends, and watching football when possible. Lisa and her family went to the Bengals vs Broncos game. The weather was amazing at almost 60 degrees! The game was exciting with a win for the Bengals, but unfortunately, we will have to wait until next season to root them on in the playoffs. Sam spent a few days in Cleveland enjoying the holidays with his family. His dad continued the annual tradition of perfecting his prime rib recipe. It was definitely a hit this year! Peter and Taylor are wrapping up renovations at their house and are feeling the stress/excitement of getting everything ready before the baby arrives. The theme song for their lives right now is “The Final Countdown” by Europe!
"Not So Silent Night" CancerFree KIDS Charity Event
The MDM Wealth Management Team is excited to announce that we raised over $15,000 for CancerFree KIDS with the help of our amazing clients! We plan to host our fourth annual charity event this year on December 5th, 2025 at 20th Century Theater in Oakley.
