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2023 Climbed a Wall of Worry. What’s in Store for 2024?

2023 Climbed a Wall of Worry. What’s in Store for 2024?

January 22, 2024

First off, I hope everyone is having an outstanding 2024 so far! I’d also like to thank everyone who came to our first Finances on Tap of the year, especially considering the weather last week! I hope you found it informative and that it provided some clarity on what to expect this year. Please don’t hesitate to provide some feedback on the content and also the venue. We tried out PJ Whelihan’s this time, and personally, I enjoyed the layout better than the Station Tap House.

I’ve attached our first-ever Paragon Wealth Management 2024 Commentary to this blog2024 Commentary. If you get a chance, please take a few minutes to read through it. It reviews what our expectations are for this year and sets the stage for what I think will be some longer-term themes that may play out over the next few years.

I think we are going into 2024 with some strong winds on our backs:

  • The Federal Reserve has most likely stopped the rate hiking cycle.
  • Americans have jobs and have gotten wealthier.
  • There’s an onshoring manufacturing boom.
  • Inflation looks to be on a sustainable path to normalization.
  • US corporations are looking good.
  • Productivity may increase.
  • Market participation should broaden to other sectors other than Technology.

That’s not to say that I’m looking at things with rose-colored glasses, but on balance, I think the economy is in a decent spot. Here are some risks I’m tracking:

  • Higher inflation could persist.
  • There are currently multiple wars across the globe.
  • The Fed could stay restrictive too long.
  • High government debt could hinder future growth.
  • We could have an unexpected acceleration in job losses.

We go into all these points in the 2024 commentary, and we’ll also be discussing some of these points during client meetings and events this year. We look forward to your feedback and hopefully warmer weather ahead.

 

Best wishes,

 

Ricardo Ferreira

Founding Partner, Portfolio Manager




The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that the strategies promoted will be successful.