When it comes to your retirement savings, the financial markets play a leading role. Whether you’re closely managing your university retirement account or prefer to set it and forget it, 2024 had some major moments that matter to you. Let’s dive into the year that was! 🚀
📊 Market Performance at a Glance
This year, the U.S. markets flexed their financial muscles:
- S&P 500: 💪 +23% (second year above 20%!)
- Dow Jones Industrial Average: 📈 +13%
- Bond Market (Bloomberg U.S. Aggregate Bond Index): A modest +1.37% 🏦
🗳️ Election-Year Effect: History Repeats Itself
Presidential election years have a knack for boosting markets. Since 1928, the S&P 500 has seen gains in 17 out of 23 election years. In 2024, Trump’s reelection stirred up specific sectors:
- 🛡️ Defense stocks soared on higher military spending expectations.
- ⚡ Energy sectors surged thanks to fossil fuel-friendly policies.
- 💰 Financial stocks rallied with deregulation optimism.
- 💻 Tech stocks bounced back after pre-election jitters.
The volatility leading up to November? It melted away with a rally powered by policy clarity. Sometimes, markets just need certainty to thrive! 🌟
💸 Federal Reserve: Turning the Interest-Rate Tide
For the first time in four years, the Federal Reserve cut rates:
- 📉 Fed funds rate ended at 4.25-4.5%.
- ✂️ Two cuts: 50 bps in September and 25 bps in December.
- 🤝 Policy pivoted to prioritize employment over inflation control.
📉 Inflation Eases (Finally!)
Inflation? It chilled out this year:
- Headline inflation: 2.7% 🛑
- Core inflation: 3.3% (excluding food and energy)
- Energy prices? Down! ⛽ Food and shelter? Slower increases. 🏠
🌟 Highlights of the Year
Some market moments to remember:
- 📈 AI took tech to new heights. Innovation continues to reshape industries.
- 💎 Bitcoin smashed the $100,000 barrier. 🚀
- 📊 Market rallies weren’t just about tech anymore. The gains were broad-based, with small and mid-cap companies joining the fun. 🎉
- The Magnificent Seven (Apple, Microsoft, Google, Amazon, Nvidia, Meta, Tesla) tech stocks still leading the charge.
Why This Matters for Your University Retirement Accounts
At Provizr, we keep a close eye on market trends so you don’t have to. Whether it’s navigating election-year volatility, adjusting for inflation, or seizing tech-driven opportunities, we’ve got your back. ✅ Your retirement goals are our priority, and 2024 is proof that strategic, diversified portfolios win the day.
Want to see how your Fidelity or TIAA account performed this year? Schedule your free portfolio tune-up with Provizr and start 2025 with confidence! 🚀
📅 Book Your Free Blueprint Today
Here’s to smarter investing and a brighter retirement future! 🎉✨