2024 Mid-Year Economic Outlook
By Potentia Wealth
09/4/24
More than halfway through 2024, the U.S. economy remains strong, yet uncertainty at home and abroad is causing investors to exercise caution. And while inflation seems largely contained, prices and interest rates remain high and are affecting consumer spending patterns. In fact, many Americans believe we are currently in a recession.
All indications suggest the Federal Open Market Committee will reduce rates at the September meeting — which would be the first rate cut of 2024. And given that the stock market is solid, wage growth has been acceptable, unemployment remains low, and innovation within American companies is thriving, a rate cut could propel us into 2025 by promoting consumer and business spending.
With the S&P 500 hitting 16%, investors are carefully considering whether continued growth is sustainable. We believe this momentum could continue, as fundamentals are strong. That said, the markets don’t like uncertainty, and we’re facing several uncertain areas: Will the Fed reduce interest rates (and will the cut be enough)? What lies ahead with the presidential election? Is there a pathway to decrease geopolitical tensions overseas? All of these unknowns will influence the S&P 500 and the overall markets in the months to come.
During our 2024 Mid-Year Economic Outlook, we discussed these issues and more with Todd Barney of Potentia Wealth. In the 32-minute webinar, Todd discusses:
- Opportunities within artificial intelligence
- First rate cut of 2024 expected in September
- Recessionary fears, slowdown in labor markets, and geopolitical conflicts
- Upcoming presidential election
- Drivers affecting S&P 500 highs
- Growth opportunities within small and mid-size companies
- Bond and fixed income market strategies
As we look toward the end of 2024 and into 2025, we are cautiously optimistic. We’re carefully monitoring several uncertain areas that could affect the markets, such as possible rate cuts, geopolitical conflicts, the presidential election, and ongoing recessionary fears. And, as always, the investment team at Potentia Wealth remains keenly focused on seeking out investment opportunities that can help clients achieve long-lasting financial health.
The content is developed from sources believed to be providing accurate information. Potentia and Potentia Wealth do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.
Advisory services offered through Potentia RIA, LLC, an SEC-Registered Investment Advisor. Potentia RIA, Potentia Wealth, and Potentia are separate entities.
©2024 Potentia Inc.