Back to all posts

January 9th

Q1 2025 State of the Markets

In this video, we review economic trends off the past year, market performance, and fiscal policies, covering key takeaways from 2024 and lessons from past decades to guide your financial strategies.

What We’ll Cover:

2024 Market Performance:

  • US stocks soared 24%, driven by a 33.4% surge in large-cap tech stocks.
  • International markets saw mixed results, with emerging markets up 8.1% but hit by Q4 losses.
  • Fixed-income challenges as rising Treasury yields reshaped bond valuations.

Economic Indicators & Trends:

  • Inflation stabilized near the Federal Reserve’s 2% target after years of variability.
  • The yield curve’s shift from inversion to expansion signals economic recovery but with fixed-income headwinds.

Key Historical Insights:

  • From 2000–2024, markets experienced tech bubbles, financial crises, and post-pandemic recoveries.
  • Diversification remains crucial, as evidenced by stocks outperforming bonds in recent years.

Fiscal Policy and Government Debt:

  • Rising interest payments, now over $1 trillion annually, highlight concerns about debt sustainability.
  • GDP trends show private industry driving 90% of economic growth, emphasizing the importance of consumer and business activity.

Takeaway:

2024 was a year of strong stock performance and modest bond returns, reflecting a complex economic environment influenced by inflation, interest rates, and fiscal policy. This video provides actionable insights for building a diversified, long-term investment strategy and navigating uncertainties.

Watch now to gain clarity and confidence in your financial future!

This content was written by Spencer S. Hall CFP®, RLP ®, CKA ®, MBA, MDiv

Spencer is a Certified Financial Planner™ with 14 years in the field of retirement and financial planning. As a second-generation financial advisor at Retirement Planning Services, Spencer brings a wealth of experience and passion to help clients align their wealth with their core values.

Advisory services offered through Retirement Planning Services, LLC.

The information in this article is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.