Quarter 3, 2024
As we wrap up the third quarter of 2024, we want to provide you with some insights into key developments affecting the financial markets, tax proposals from the Harris and Trump campaigns, and how the upcoming election could shape the economic landscape.
Additionally, we will be scheduling our end-of-year annual meetings soon; if you would please let us knowwhether you prefer an in-person meeting or one by ZOOM, we can better compile a schedule.
Financial Market Overview
The third quarter of 2024 has been characterized by both volatility and opportunity. The ongoing uncertaintysurrounding global economic recovery, inflation, and interest rates has continued to impact market sentiment.However, resilient corporate earnings and some easing of inflation pressures in recent months have provided astable foundation.
Equities: The S&P 500 showed modest growth, driven by strong earnings in sectors such as technology andconsumer discretionary. However, volatility remains high as geopolitical risks and rising oil prices createuncertainty.
Bonds: Bond markets have stabilized after a sharp rise in yields earlier in the year. The Federal Reserveremains cautious about further rate hikes, with Chair Jerome Powell emphasizing a data-driven approach.
Commodities: Oil prices surged in Q3 due to supply chain disruptions and geopolitical tensions in theMiddle East. Gold saw modest gains, supported by investor demand for safe-haven assets.
Tax Proposals and Election Impact
As the 2024 election cycle gains momentum, both the Harris and Trump campaigns have put forward significanttax proposals that could have long-term implications for your financial planning:
Kamala Harris Tax Proposal: Harris has proposed expanding the Child Tax Credit and Earned Income TaxCredit, aimed at reducing inequality. Additionally, she is pushing for a higher capital gains tax onhouseholds earning over $1 million, a wealth tax on the top 0.1%, and corporate tax increases to fund socialprograms. For high-net-worth individuals and business owners, this could mean revisiting tax-efficient strategies.
Donald Trump Tax Proposal: Trump is campaigning on reducing income taxes, with a focus on cuttingcorporate tax rates to spur investment and growth. He also proposes lowering the capital gains tax andoffering tax incentives to encourage domestic manufacturing. If implemented, these policies could stimulate economic growth but may have budgetary implications.
The outcome of the election will undoubtedly affect markets and policy directions. Markets may experience short-term volatility as election results become clearer, but long-term planning remains key to navigating potential changes.
Election Impact on Markets
Historically, markets tend to experience increased volatility in the lead-up to presidential elections. However, theyalso show resilience once uncertainty is resolved. Sectors such as healthcare, energy, and defense could be particularly impacted depending on the outcome, given the divergent policy views of the candidates.
Market Sensitivity: The market tends to favor stability, so the outcome of the election, whether it’s a continuation of current policies or a shift to new strategies, will affect industries differently. Technology, green energy, and defense sectors could see swings in response to the election’s outcome.
We will closely monitor these developments and adjust your portfolio as needed to ensure that it aligns with both the political and economic landscape.
4th Quarter Annual Meetings
As we prepare for the final quarter of 2024, it’s time to review your financial goals and portfolio performance.During our meeting, we will:
Review your 2024 financial performance
Discuss any necessary portfolio adjustments based on current market conditions and upcoming taxchanges
Plan for 2025, taking into account potential changes in tax laws and election results
If you haven’t already done so, please send us your 2023 tax return and, if applicable, your most recent 401(k)statement, and/or other updates, prior to our meeting. This will ensure we have all the necessary information tomake well-informed recommendations
Thank you for your continued trust and partnership. As always, our goal is to help you review your strategy andensure we are on track to meet your goals for both long- and short-term goals.
Contact Information
866.220.7788 is the number to use to leave a message. Please do not leave voice mails on home or cell numbers as they are unreliable—it is unlikely you will receive a return call from these numbers.
Email is always good as it also comes through to our cell phones.
It is OK to send texts to our cell phones, but we can’t accept trade orders or other financial requests via text as they cannot be saved to the satisfaction of the SEC.
laura@addingtonfg.com Laura Addington ld@addingtonfg.com Laura Brown
The mailing address has not changed, PO Box 143, Winnsboro, TX 75494.
Please contact us at any time should you have any questions or concerns.