Midyear Review: Stocks Maintain Momentum at Year’s Halfway Point

How long can the bull market endure, and which way will inflation, and interest rates, go? Will the surge for AI-associated companies continue? Will global hostilities in the Middle East and Ukraine ease or increase? Will the US election bring a big November stock swing? (Spoiler: It usually hasn’t.) We’ll find out eventually, by the time the answers are also incorporated in market prices. Until then, 2024—like every year—is a good one for having a long-term plan and sticking with it.

AI Tide May Lift All Boats

Eventually, we may reach a point where, like the internet, it’s hard to fathom a time before broad AI usage. That means investors don’t need a narrow sector fund or concentration in a handful of stocks to capture AI-fueled gains. A broadly diversified portfolio is likely to capture what many view as a sea change event in progress.

According to Young Investors, Progress toward Goals Matters Most

Young investors were almost twice as likely to prioritize progress toward their goals as older investors. By targeting the size, value, and profitability premiums, advisors can help young investors make more progress toward their long-term goals.

Investing & Politics - A Historical Perspective

Bottom line - there is no connection to investment performance and which party is in power. It’s natural for those engaged in current politics to be very concerned about the other side winning and being in power. The flames are fanned by both sides and the media. Our advice - try very hard to disconnect your investing decisions, and emotions from current news and politics. Use data like this to remind you of the FACTS.

The Difficulty and Rewards of Staying the Course

In investing, it’s common to hear warnings of bubbles and impending bear markets. Some businesses are incentivized to grab your attention by capitalizing on known investor fears and loss-aversion tendencies. Together, these can lead to short-term actions that go against long-term objectives.