Happy 2025!

We hope you and your family had a wonderful holiday, and that everyone is enjoying the first quarter tradition of dating documents as last year.  We’re looking forward to getting it right in the second quarter per usual. 
This past quarter still had a gain as many investors and the rest of us waited out the election results.  While December pulled back some with what we estimate to be tax harvesting, the gains topped off two solid years of growth in 2023 and 2024.

Here in Greensboro, we saw snow for the first time in over 1000 days over the weekend.  Cricket, now 6 months old and full of puppy, loved every minute of it.  It was business as usual for the dance competition scene and Lila’s solo performance won awards.  Amelia competed in her first cheer competition in the 4th quarter and came home with a win.  Now if they will just go back to school for a full week, they might learn a few things. 

 
Business Side:

• Q4 Market Recap: The first quarter saw markets post significant gains. Rising earnings, easing inflation and a revised GDP Outlook fed the growth with the S&P gaining 2.41% in the quarter. The Bloomberg US Aggregate Bond Index pulled back by 3.06% for the quarter.
• Retirement Plan Contributions: If you are investing in a retirement plan through your employer and want to make sure you are investing the full amount, reach out.  Hint: if you are over 50, you can maximize your 401k contributions at $30,500 for 2025.
• Tax Season: We expect 1099s to be out in mid-February.  We will do our very best to get copies out if you did not receive them in the mail.

Social Media:

• Google Reviews Matter:  We would love your help in leaving us a Google review.  Your feedback is greatly appreciated. 
• Staying Connected: We want to connect with you more via social media. Let’s connect on Instagram, LinkedIn or at @tmrwwealth, or follow our page on  Facebook. We will be posting regularly on our blog as well so be sure to check it out from time to time.

Quarterly Outlook:
Overall, we have dialed back the risk in the fourth quarter as we adjusted portfolios.  With the recent growth in stocks and the expected growth in bonds in the coming year, we have toned down the risk slightly.

• The Impact of AI:  The rapid advancements in AI will continue to reshape various sectors of the economy.   Various industries will see disruption and shifts as technology adapts to impact how business is conducted.
• Global Economic Growth and Tariffs: The global economic outlook remains uncertain. Factors such as geopolitical tensions, inflationary pressures, and tariff talks could play a role in this growth.   
• Interest Rates: The market will likely be paying very close attention to the Federal Reserve meetings and their approach to interest rates.   We expect some of the rate cuts we expected last year to eventually happen.
• For a more in-depth look at the year to come, click here.
  We are grateful for the families we work so closely with.  We hope you and your family have your best year yet.    
  With gratitude,
  Matt Logan

Sources: 
Disclosures:  Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.  The views stated in this letter are not necessarily the opinion of Cetera Advisors LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.  The S&P 500 is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The Barclays Capital U.S. Aggregate Bond Index, which used to be called the “Lehman Aggregate Bond Index,” is a broad base index, maintained by Barclays Capital, and is often used to represent investment grade bonds being traded in the U.S. Barclays Capital (BarCap) U.S. Aggregate Bond Index is made up of the Barclays Capital U.S. Government/Corporate Bond Index, Mortgage-Backed Securities Index, and Asset-Based Securities Index, including securities that are of investment grade quality or better, have at least one year to maturity, and have an outstanding par value of at least $100 million.