Presenters: Lowell Pratt, CFA, Andy Pratt, CFA, CAIA, and Adam Newman, CFA, CFP®, MT, RICP®
Here is the webinar recording from October 16th, 2024. You can browse the topics discussed and main takeaways using the sections and time stamps below:
Click the time-stamp in each section title, and you will jump right to that part of the video on a new screen!
Recognized as the number one Financial Advisor in the State of Virginia by CNBC*
Jumped from number 9 to number 3 nationally
Reflection of 50 years of commitment to client service
Recapped the previous decline, but the market has since recovered
Most asset classes exceeded their typical quarterly averages
US equities continued to perform well
Overseas markets had a resurgence
Reviewed 1, 5, and 10 year performance numbers
International markets starting to bounce back
US equity-driven market over the last 10 years
Encouraging trends for domestic investments
Bull vs. Bear market context
The average bull market lasts about 5.5 years historically
The current bull market is about 2 years in
Discussed sustainability of current market trends
Elections have little impact on the stock market
No significant difference in market performance during election years
Economic factors more important than election outcomes
Fed cutting rates marks a turning point in the battle against inflation
Rate cuts don't necessarily favor one part of the market over another
Context matters more than the rate cut itself
Over the last 10 rate cut cycles, the reason for the cut was a recession four times, a growth scare three times, and normalization three times
When the reason was a growth scare or normalization, the market did well
When the reason was a recession, the market underperformed
This is something to keep watching, but Goldman Sachs economists only predict a 20% of recession over the next 12 months
A falling interest rate environment does not necessarily predict the size and style phase
There have been both pro-small cap and pro-large cap phases following the first interest rate cut
That said, Growth stocks outperformed Value stocks in 4 of the last 5 rate cut cycles and that is where we continue to lean today
Momentum has been the best performing factor in 2024
Definition of momentum and discussion of the academic evidence for the factor
Consider stock price momentum in your investing strategy
Addressed questions about the bond outlook
Discussed potential changes in estate tax laws
Explored the impact of political tensions on the global economy
Answered queries about national debt and its effect on markets
CNBC’s annual FA 100 ranking was published on 10/2/2024 for the year 2024. The Burney Company did not pay CNBC any compensation for being considered for the list, however, Burney Company does pay a licensing fee to use the CNBC logo in marketing materials. A link to the CNBC selection criteria can be found by going to https://cnb.cx/3Pg6FVh. The CNBC award was given to The Burney Company, the parent company which encompasses nine other Affiliated Portfolio Managers, and not Burney Wealth Management.