Equity markets experienced strong gains in 2024 with performance led by technology
related companies including members of the Magnificent 7 which accounted for over
half of the annual increase in the S&P 500 index. Although the full year was strong,
markets in December broadly retreated as the post Presidential election rally faded.
Against a backdrop where market valuations appear relatively full when compared to
historical levels, we remain encouraged by the current economic backdrop that features
robust corporate earnings growth, a Federal Reserve that remains in an easing mode,
inflation that has trended down, low unemployment, and solid GDP growth. However,
despite this generally favorable economic backdrop, questions remain on potential
Trump administration policies as well as unsettled geopolitical factors that could impact
the direction of markets in 2025. Nevertheless, we remain bullish and see opportunity
across equities, particularly in areas that have lagged relative to the Mag 7 leaders that
drove 2024 performance.