Stocks boomed again in 2024, delivering a strong performance powered by interest rate cuts and hopes for economic growth.

Can the bull market keep running? Is a correction hiding around the corner?

We'll dive into what happened in the final months of 2024 and what we might see in the first months of 2025.

Advisory services are provided through Prosperity Capital Advisors LLC (“PCA”) an investment advisor registered with the United States Securities and Exchange Commission (SEC). Views expressed herein represent the opinions of PCA and are not intended to predict or depict performance of any particular investment.

All data provided, including any reference to specific securities or sectors, is provided for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation, or recommendation to purchase any security. Consider your investment objectives, risks, charges and expenses before investing. These views are as of the date of this publication and are subject to change. Past performance is no guarantee of future performance.

With a strong but volatile push into the fourth quarter of 2024, the stock market has delivered great results to investors who have stayed disciplined.

In this video, we will discuss the 3 key themes on the minds of investors as we enter into the fourth quarter of 2024. We will discuss:

✅ What could the start of the Fed rate cutting cycle mean for investors?
The Federal Reserve kicked off its highly anticipated rate cutting cycle with a 50-basis point reduction in September 2024. History shows cash yields decline rapidly following the start of cutting cycles, falling by 2% on average just twelve months later. U.S. stocks have delivered a positive return of 7.2% one year after the initial cut, though depending on whether the economy avoids a recession or not within that year has led to starkly different results (+19.6% vs. –2.7%).

✅ How have markets performed in the months surrounding presidential elections?
Based on trends, we shouldn’t be surprised if we see an increase in volatility leading up to the U.S. presidential election. That said, history shows that it may be temporary, as markets tend to calm rather quickly once the results are in. A similar trend can be seen in stock prices, which on average have been choppy beginning in September and lasting into November of election years. However, after Americans go to the polls, investors who stayed the course have historically been rewarded with strong gains, both in the short- and long-term.

✅ Why should investors think of market volatility as an opportunity?
Volatility is a feature of investing, not a defect. However, many investors instinctually view it as something to fear and avoid, which can lead to poor behavior and subpar long-term results. Investors could benefit from thinking of the VIX as an “opportunity index.” Because while it’s always a good time to invest, history shows that some of the best opportunities have come during periods associated with elevated volatility.

🖥 Looking for an advisor who truly understands financial planning, investments, taxes, protection planning, and legacy planning? Visit our website https://alisonwealth.com

Advisory services are provided through Prosperity Capital Advisors LLC (“PCA”) an investment advisor registered with the United States Securities and Exchange Commission (SEC). Views expressed herein represent the opinions of PCA and are not intended to predict or depict performance of any particular investment.

All data provided, including any reference to specific securities or sectors, is provided for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation, or recommendation to purchase any security. Consider your investment objectives, risks, charges and expenses before investing. These views are as of the date of this publication and are subject to change. Past performance is no guarantee of future performance.

On August 16, 2024, Presidential candidate Kamala Harris released details of her economic and tax plan. Bob Keebler analyzes the estate and gift tax proposals contained in the proposed American Housing and Economic Mobility Act of 2024.

In this video, we will break down the income and estate tax considerations of her proposal.

We will discuss:
➡️ Exempting Tip Income from Taxation
➡️ Expanding Tax Credits for Families
➡️ Housing Tax Incentives
➡️ Clawing Back Deductions
➡️ Corporate Income Tax Rate
➡️ Higher Tax Rates
➡️ Capital Gains Tax Reform
➡️ 32% increase to Medicare Tax for people earning over $400k
➡️ Additional Tax on Retirement Accounts over $10m & earnings over $400k
➡️ Financial Transaction Tax
➡️ Apply wash sale rules to Crypto and digital assets
➡️ Limiting Like-Kind Exchanges to $500k
➡️ Reducing the Estate & Gift Tax Exemption Amount
➡️ Increasing the Estate Tax Rate
➡️ Eliminating the Step Up in Basis for Grantor Trusts
➡️ Reducing the Annual Gift Exclusion to $10,000 with an annual cap of $20,000 per person
➡️ Creating a 10-year life for GRATs and imposing a 10% remainder interest
➡️ Ending Grantor Trusts
➡️ Limiting Discounts on Certain Assets
➡️ Imposing a Surtax on high income trusts and estates of 5% for AGIs over $200k and another 3% for AGIs over $500k
➡️ A minimum 25% tax on total income (inclusive of unrealized capital gains) for taxpayers with wealth greater than $100 million

🖥 Looking for an advisor who truly understands financial planning, investments, taxes, protection planning, and legacy planning? Visit our website https://alisonwealth.com

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Advisory services are provided through Prosperity Capital Advisors LLC (“PCA”) an investment advisor registered with the United States Securities and Exchange Commission (SEC). Views expressed herein represent the opinions of PCA and are not intended to predict or depict performance of any particular investment.

All data provided, including any reference to specific securities or sectors, is provided for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation, or recommendation to purchase any security. Consider your investment objectives, risks, charges and expenses before investing. These views are as of the date of this publication and are subject to change. Past performance is no guarantee of future performance.