As we step into the new year, it’s a time when financial predictions abound, especially regarding future stock market outcomes. While these forecasts make for engaging financial news, they often highlight the inherent challenges of predicting market movements.

Reflecting on 2024, it’s noteworthy that most major U.S. investment banks, with one exception, predicted losses for the S&P 500 before the year began. Yet, as we all witnessed, the market defied these expectations.

This brings us to a crucial point: the importance of “time-IN the market” rather than attempting to time the market.

Historical data consistently shows that staying invested over the long-term generally yields better results than trying to predict short-term fluctuations. Even though assessing short-term “soil” conditions can be tricky, understanding the fundamental factors that drive market performance can help investors make more informed decisions.

At BluHawk, we refrain from making specific predictions or forecasts for 2025. Instead, we emphasize the importance of understanding the risks and opportunities inherent in investing. The past two years have demonstrated the potential rewards of staying the course, with many investors experiencing significant gains in both 2023 and 2024.

As we navigate the new year, we encourage our clients to focus on their long-term financial goals and maintain a well-diversified portfolio. By doing so, you can better position yourself to weather market volatility and capitalize on opportunities as they arise. Here’s to hopes for a potentially prosperous and well-informed 2025!

Market and Economic Data Update

Data just below is as of December 31, 2024
Source: Clearnomics