.webp)
As we step into 2025, I thought it would be beneficial to take a moment and reflect on what an extraordinary year 2024 was for investors.
Despite persistent concerns about the economy, inflation, and political uncertainty, the stock market delivered an impressive performance. The S&P 500 surged over 23%, marking back-to-back years of gains exceeding 20%—a feat we haven’t seen since the late 1990s.1
What were the factors affecting market performance?
One of the biggest drivers of this market success was the Federal Reserve’s shift to lower interest rates after years of aggressive tightening. Although rate cuts were gradual and fewer than anticipated, they provided meaningful support to market momentum. Mortgage rates dipped, borrowing costs eased, and hopes grew for a ‘soft landing’ rather than a recession.2
At the same time, U.S. economic growth outperformed expectations, with GDP expanding steadily throughout the year.3 Consumer spending remained resilient, and despite lingering inflation pressures, the economy proved remarkably durable.4
Of course, not all sectors shared equally in the market’s success. Technology stocks dominated the headlines, with the so-called “Magnificent Seven”—companies like Nvidia, Microsoft, and Apple—leading the charge.5 Artificial Intelligence remained the defining theme of the year, capturing investor enthusiasm and driving valuations to historic highs.6 Yet, as the year progressed, we saw broader market participation, with other sectors beginning to share in the rally.
Political and geopolitical events also influenced the year. Markets experienced volatility following the presidential election, initially surging on optimism before tempering gains as concerns about potential inflationary pressures emerged.7 Meanwhile, geopolitical tensions and uncertainty around the Federal Reserve’s future policy decisions added volatility throughout the year.8
What’s ahead for 2025?
Looking ahead to 2025, we’re entering a year of change and uncertainty. After such a significant market run, expectations for continued outsized gains are more tempered. Analysts are cautiously optimistic, forecasting more modest market growth this year.9
As a financial advisor, my role is not to predict market outcomes—it’s to prepare and adapt my clients’ financial strategies no matter what 2025 brings. Whether it’s economic shifts, political changes, or market volatility, I’ll be here to help navigate it all.
If you have any questions, please don’t hesitate to reach out.
Sources:
1. AP News, 2024 [URL: https://apnews.com/article/stock-market-wall-street-tesla-nvidia-bitcoin-5e8bddd4ca301d66480249b41b4836ac]
2. Trading Economics, 2025 [URL: https://tradingeconomics.com/united-states/interest-rate]
3. Trading Economics, 2025 [URL: https://tradingeconomics.com/united-states/gdp-growth-annual]
4. Trading Economics, 2025 [URL: https://tradingeconomics.com/united-states/personal-spending]
5. Yahoo Finance, 2025 [URL: https://finance.yahoo.com/news/magnificent-seven-stocks-dominate-p-180221332.html]
6. Morningstar, 2025 [URL: https://www.morningstar.co.uk/uk/news/258865/tech-and-communication-stocks-drove-us-market-gains-in-2024.aspx]
7. US News, 2025 [URL: https://www.usnews.com/news/economy/articles/2025-01-13/inflation-worries-to-dog-the-fed-and-crimp-trumps-economic-agenda]
8. Federal Reserve, 2024 [URL: https://www.federalreserve.gov/monetarypolicy/fomcminutes20241218.htm]
9. Morningstar, 2025 [URL: https://www.morningstar.ca/ca/news/259217/2025-us-market-outlook--markets-are-priced-to-perfection-but-will-it-last.aspx]
Chart Source: Federal Reserve Economic Data, 2025 [URL: https://fred.stlouisfed.org/]
Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional.
Content created by Snappy Kraken.
535 Third Street
Beaver, PA 15009
LPL Disclosures
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Three Cord True Wealth Management, LLC, a Registered Investment Advisor and separate entity from LPL Financial.
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AR, AZ, CA, CO, DC, FL, GA, IA, KS, MD, ME, MA, MI, MO, NV, NC, NJ, NY, OH, PA, SC, TN, TX, VA, WA, WV.
Professionals associated with Three Cord True Wealth Management,LLC may be either (1) registered representatives with, and securities and advisory services offered through LPL Financial, Member FINRA/SIPC, a registered investment advisor; or (2) solely tax professionals of Three Cord True Wealth Tax Solutions, LLC, and not affiliated with LPL Financial. Tax-related services offered through Three Cord True Wealth Tax Solutions, LLC DBA [Three Cord True Wealth Management, LLC]. Three Cord True Wealth Tax Solutions, LLC is a separate legal entity and not affiliated with LPL Financial. LPL Financial does not offer tax advice or Tax-related services.
No client of Three Cord True Wealth Management, LLC is under any obligation to use the services of Three Cord True Wealth Tax Solutions, LLC and can engage a non-affiliated Certified Public Accountant or tax preparation service provider.
Three Cord True Wealth Management Important Disclosures
Three Cord True Wealth Management, LLC is an SEC-registered investment adviser. Three Cord True Wealth Management, LLC may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements. Three Cord True Wealth Management, LLC website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information such as articles written by third parties, firm-written newsletters and/ or publications, and third-party links. Accordingly, the publication of Three Cord True Wealth Management, LLC website on the Internet should not be construed by any consumer and/ or prospective client as our Adviser's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. Any subsequent, direct communication by the Adviser with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Three Cord True Wealth Management, LLC, a copy of Three Cord True Wealth Management, LLC’s current written disclosure statement discussing Three Cord True Wealth Management, LLC's business operations, services, and fees is available at the SEC' s investment adviser public information website -www.adviserinfo.sec.gov 307480 or from the Adviser upon written request, nraught@3ctruewealth.com.
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by the Adviser), will be profitable or equal any historical performance level(s).
This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/ or tax professional before implementing any strategy. This website and information are not intended to provide investment, tax, or legal advice.
Insurance products and services are offered and sold through Three Cord True Wealth Management, LLC and individually licensed and appointed insurance agents.