2024 Q4 Client Newsletter

If we take a look back at what we were thinking a year ago, I imagine most of us would have been focused on the US election and/or maybe a few other elections around the globe. Aside from election dramatics, here are some remarkable events from 2024:

• In December, the Federal Reserve reduced interest rates and the S&P 500 dropped nearly 3%
• The S&P 500 closed at an all-time high 47 times in 2024
• The recession many ‘leading economists’ predicted never came to be
• Not quite the Katrina/Rita combo, but Hurricanes Helene & Milton devastated large swaths of the US
• In one single day, Japan’s stock market fell more than 12%, which lead to a tripling of US stock market volatility that day. It happened so quickly that it was over before most people even knew about it.
• Hostilities in the Middle East continued to escalate and, although far from over, have resulted in the fall of Syria’s Bashir Al Assad
• US household debt service ratio is near a 40-year low, great news for consumers and businesses
• Corporate earnings and dividends continued to reach record highs, and is forecast to continue increasing into 2025
• Taylor Swift’s Eras Tour actually came to an end…just not in my house (ha!)

We can go on and on with the remarkable events and market statistics of the past year, or even the remarkable events for the past 10 years, but one thing should stand out as a constant: the resilience of global markets to keep doing what they do in the face of consistently unpredictable and unprecedented world events. The Q4 positive tail wind may continue into 2025, or it might be that the market with its stretched valuations may slow down or even stall. Either way we’ll be OK with it because our investment plans are based around hundred-year averages and not short-term expectations. If we allow ourselves to become focused on any single event—be then related to a country, disaster, breakthrough or specific company—we’re doomed to never escape the quagmire of trying to figure out what’s next.  The only thing we know to be next is that there will be more change along with a few more surprises, and adapting to that change is what we and our economic systems do day in and day out.  Speaking of change…

Congratulations to Christopher Lee, CFP® Candidate

Many of you have already had the pleasure of meeting Chris, who joined us last February.  In November Chris sat for the CFP® exam and passed on his first try, achieving a goal he’d set for himself as a teenager.  Although not a full CFP® practitioner until he completes the apprenticeship requirement of the CFP® designation, he will be increasingly visible as his role expands.

Click here to access your quarterly statement.

Live Long and Prosper,

Dan Tobias, CFP®

Please note: The above is a copy of the 2024 Q4 Passport Wealth Management client newsletter attached to quarterly statements from January 2025. The newsletter is published to the website for informational purposes only and is not financial or investment advice. You should consult a CERTIFIED FINANCIAL PLANNER™ Professional for financial advice. 

Past performance may not be indicative of future results. Indexes are not available for direct investment. Investing involves risks, including the potential for loss of principal. There is no guarantee that markets will act as they have in the past or that any investment plan or strategy will be successful.