Hi All — Brian here. Welcome to January. The first month of a brand new year. We hope the holiday stretch wrapped up on a positive note for everyone. December is so much fun, but it’s also so busy. We hope you were able to squeeze in a little bit of rest and relaxation with family and friends ahead of what promises to be another interesting trip around the sun.

As I was doing some reading over the holidays I came across a few fascinating thoughts from a writer named Tim Urban. He posted the facts below and I thought they were worth sharing before we dive into this month’s edition. Here’s a few interesting ways to think about the year 2025, specifically as it relates to other points in time:

• We are officially one-quarter of the way through the 21st century. And because we are already a few days into the second quarter of the 21st century:

• We are closer to 2040 than 2010

• We are closer to 2060 than 1990

• We are closer to 2100 than 1950

And for icing on the cake, take a look at this image below. Again, full credit goes to the author Tim Urban:

Now, with that perspective to start the year, let’s continue onward.

As a quick reminder, the goal of this newsletter is to provide a closer look at key developments that moved the markets over the past month, share relevant thought pieces from our team, and discuss how these trends might impact your portfolio.

As always, we are here to support you, so please don’t hesitate to schedule a call or reply directly to this email if you’d like to discuss any of these topics in more detail.

2024 FULL YEAR MARKET PERFORMANCE

DECEMBER MARKET SUMMARY

• After a strong performance throughout the year, Wall Street faltered in the final days of December. Investors took profits from some of 2024's top-performing stocks, while concerns about rising interest rates intensified. In December, the Dow dropped 5.3%, the S&P 500 slipped 2.5%, and the Nasdaq managed a modest gain of 0.5%.

• With that said, the S&P 500 has now risen 53% over the past two years. This is the best two year stretch since the nearly 66% bull run in 1997 and 1998.

• The top performing stocks in the S&P 500 in 2024 were Palantir (PLTR), with a 340% gain, Vistra (VST) with a 258% gain, and Nvidia (NVDA) with a 171% gain.

• Wall Street got a boost throughout the second half of the year from developments in Washington. Since September, the Federal Reserve has lowered its benchmark interest rate by a full percentage point. Additionally, stocks popped after President-elect Donald Trump’s November victory, as traders welcomed the potential for lower taxes and a more relaxed regulatory environment under the incoming Republican administration.

• On an annual basis, the consumer price index increased 2.7% in November, up slightly from a 2.6% reading in October. Prices for groceries, gasoline and new vehicles increased. While it wasn’t a big jump on a monthly basis, economists believe price increases remain persistently high.

ONE BIG THING: A HAWKISH TURN

The Federal Reserve’s final meeting of the year sent shockwaves through the equity markets — but not because of the central bank’s interest rate decision. As widely expected, the Fed cut rates for the third consecutive time, lowering its benchmark borrowing rate by another 25 basis points to 4.25% to 4.50%.

However, subsequent signals from central bankers suggested it might be the last cut for some time.

The Fed predicted it will only cut rates twice in all of 2025, and Fed Chair Jerome Powell cast further doubt in cautious comments delivered after the meeting. The main reason for the hawkish turn was stickier-than-expected inflation data, with the November CPI showing an annual rise of 2.7%.

In the lead-up to and aftermath of the decision, the Dow Jones Industrial Average posted 10 straight days of losses, its worst losing streak since the 1970s.

The stock market just closed out its strongest two years in more than a decade. The Fed’s change in tone raises a pressing question: how long can it last?

FEATURED POST

Why Affluent Retirees Are Aging in Luxury Communities

For many wealthy retirees, aging has transformed from an anxiety to an extravagance.

Upscale retirement communities are emerging across the U.S., enabling seniors to live out their golden years in luxury. These facilities — also called “life plan” or “continuing care retirement communities” — often include high-end amenities like valet parking, gourmet meals, and even lectures from prominent professors.

The appeal of aging in luxury communities is obvious: they promise a long life of peace, comfort, and independence. But this lifestyle comes at a price. Upfront fees range from around $1 million to more than $7 million, and monthly fees average nearly $5,000, with the highest fees reaching well above $10,000.

Click here to keep reading →

KEEP READING

CLOSING REMARKS

Our team at Griffin Asset Management is here to help you make the most of the opportunities and challenges ahead.

If you have any questions or would like to discuss your financial strategy, please don’t hesitate to reach out.

We’re always available to set up a call and provide the personalized advice you need. Thank you for your continued trust and partnership.