Market news is lighter this week with the Thanksgiving holiday. As we are still dealing with the effects of the extended shutdown, several economic data releases have been delayed until December – whether it be the 3rd quarter reading on Gross Domestic Product (GDP) or key inflation data. With the Federal Open Market Committee (FOMC) meeting next week, the data-dependent Fed will be working with some not so recent data. Currently, odds are greater than 50/50 that the FOMC will cut rates by 0.25%.
While there has been a heightened level of volatility experienced over the last few weeks, with the broader market down low-to-mid single digits (from all-time highs), let’s take a step back. Let’s reflect on all that the market has given investors, and the extraordinary amount of wealth that has been created over the last 16 years. Dating back to the Great Financial Crisis, which saw the S&P 500 drop over 50% from October 2007-March 2009, the returns investors have experienced since then has been nothing short of remarkable. It’s not been a straight ride up, but the good has far outweighed the bad. Setting aside the quick 30% drop at the start of the pandemic in February-March 2020, and the ugly performance of both stocks and bonds in 2022, the ride has been an incredible one. Below is the price performance of major stock market indices since March 2009:
Financial Planning Corner
With year-end approaching, it’s a great time to reflect on the year and see if you checked anything off your financial to-do list. This could include:
- Control what you can control – spend less than you make
- Establish or replenish an emergency fund
- Eliminate all credit card debt
- Max out your 401(k), 403(b) or other employer-sponsored retirement plan (and/or a IRA/Roth IRA)
- Set aside some money for that long-awaited vacation 😊
This lays the foundation for wealth creation. While this is not all encompassing, it’s a powerful start – rinse and repeat. I include #5 because we all need a break from the daily grind, and always having a trip to look forward to is something I am a huge believer in.
Quick Hits:
- There is no shortage of Black Friday deals – here are a few: Black Friday 2025 deals from Amazon, Walmart and Target are here: The biggest sales we're shopping right now to kick off the holiday season
- Most festive towns for Christmas: The 31 Most Magical Christmas Towns in the U.S.
- With less sunlight and colder temperatures, finding a way to stay active, engaged and social can be difficult. For both your physical and mental health – here are a few ideas that hopefully help: Winter Self-Care: 4 Ideas to Boost Your Health | TakeCare; How to Stay Active During the Winter Season | AICR
- Goes without saying, but will mention it anyway: The 11 Worst Things to Say to a Family Member Over the Holidays
Home for Thanksgiving
I’m writing the newsletter from my parent’s house outside of Knoxville, TN this week. My brother, sister-in-law and baby niece have come in from D.C. so we can all be together this Thanksgiving (we alternate which holidays we are all back in TN). Nothing replaces the time spent and memories made with those you love most. If you are one of our avid newsletter readers, I hope you are reading this today surrounded by those that mean the most to you.
I can speak for all of RSWA to say we are incredibly thankful for each and every one of you.
Quote: “Feeling gratitude and not expressing it is like wrapping a present and not giving it.” Willam Arthur Ward
Thank you for reading RSWA Financial Advisor Insights! We welcome feedback, and please forward this to a friend! Be well, take care, and stay safe!
