Jerome Powell and the Federal Reserve took away the punch bowl just as the party was getting out of control. In a year in which most asset classes and markets appreciated, most are ending the year on a negative note, down for the final quarter of the year. With a new administration in Washington, the year ahead suggests some rotation, independently of what the Fed decides to do. We could see the leaders of the past year or more––U.S. tech stocks among others––declining while laggards––international markets, particularly smaller ones, value stocks, and resource stocks, among others––come to the fore. With many global economies declining amid excessive debt loads and a new U.S. president, much remains uncertain, however.

Finish reading here: Portfolio Review 4Q 2024