Quarterly Client Letter: January 2025
The final quarter of 2024 was anything but quiet. (Then again, when is it ever?) The Federal Reserve lowered interest rates, giving borrowers and markets a welcome boost. The U.S. election had the nation’s full attention, bringing with it a wave of uncertainty about the road ahead. And through it all, the stock market soared to new highs. The S&P 500 finished the year up 23.31% - according to Morningstar - marking the best back-to-back calendar years in 25 years.
Markets are unpredictable by nature—sometimes exhilarating, sometimes nerve-wracking, but always moving. And while watching the market’s ups and downs can be fascinating, the real question is: How much does it actually matter to you? Instead of focusing on the latest headlines, now is a good time to zoom out and center on what truly drives your financial success—your goals, your vision, and the life you want to build in 2025 and beyond.
A Few Thoughts on a Roaring Market
Two strong years in a row can stir up emotions—the mirror image of what many investors feel after a couple of down years. By now, you probably know that panic-selling in a downturn is a mistake. But what about when the market keeps climbing?
A rising market can be exciting and make you feel optimistic about the future. But it can also lead to a different kind of FOMO—the regret of not having invested more aggressively. It’s easy to look back and think, If only I had taken on more risk, I could have made even more money. And that can tempt you to chase returns, piling more into stocks just to keep up with the rally.
But here’s the thing: Your portfolio isn’t designed to beat the market in any given year—it’s designed to support your long-term success. A well-diversified portfolio will never match the returns of the highest-flying asset class in a given year. But it also won’t match the losses of the worst performer. That’s not a flaw—it’s the point.
Investing isn’t about chasing the biggest returns. It’s about making sure your money is working in a way that helps you live the life you want.
Returning to What Really Matters
At the core of your investment plan, it’s not about the markets, the latest stock trends, or even your portfolio’s returns. It’s about you—your goals, your values, and the future you envision.
As we go through 2025, take a moment to reflect. What do you want the coming years to look like? What brings you purpose and fulfillment? Maybe you’re preparing for retirement and want to make sure you have everything in place to live comfortably. Perhaps you’re focused on securing your family’s financial future. Or maybe this is the year you finally take that bucket-list trip, pick up a new hobby, or give back to a cause that means something to you.
The markets will have their ups and downs in the year ahead—they always do. But with a strong investment strategy and a well-structured portfolio, your financial journey won’t be defined by short-term swings. It will be shaped by the long-term goals you set and the actions you take to reach them.
Navigating financial markets—and life’s big decisions—can sometimes feel overwhelming. But that’s why we’re here. With thoughtful planning and the best evidence available, we’ll continue to align your financial resources with your vision for the future. Let’s make 2025 a year of progress, purpose, and partnership.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.