Well, the stocking was not stuffed with coal this Christmas.
We were able to put in eight straight weeks of gains.
There were only a couple of bumps in the road.
I suppose you never say never.
One of my concerns this year was my thought that the Federal Reserve never orchestrated a soft landing.
I’m not saying that is what is happening, but is about as close as you can get and not accomplish the objective.
The S&P 500 is above 4700 and there are projections that we will easily move to 5100 next year.
Unquestionably, the Magnificent 7 led the pack north.
Some contend that you cannot sustain growth in so few stocks.
I would agree, but I’m more focused on what will happen in the economy.
I do feel consumers made the push to make this Christmas merry and bright.
I have a feeling, however, there might be a bit of a hangover going into next year.
There is a remarkable amount of consumer debt piling up.
I’m also concerned about the impact of Iran in the Middle East.
They are the agents behind the halt in shipping in the Red Sea, the war in Gaza and attacks on Israel from Lebanon.
Our dear friends the Saudis are of little or no help either.
Then you have the continuing battle in Ukraine, along with whatever will happen with Taiwan.
It would take little or nothing to set one of these off and create problems worldwide.
I’m not imitating Chicken Little, but I am saying that all is not that rosy and bright.
I also doubt that interest rates are going to be reduced that far.
That gives me concerns about banks.
That sector has caught favor on the back of rate-reduction projections.
I distinctly remember banks being in favor when rates went up too.
You can’t have it both ways as Silicon Valley Bank proved last March.
I am intrigued by the dividend payout of some regional banks, but they could be the hardest hit if commercial real estate takes a beating as some have projected.
Much of what we see happening on projections of what AI will do for the economy.
It would be remiss to doubt such.
You only have to look back at cell phones, the internet and anything else associated with the digital age.
While I am cautious and sitting on some cash, it still seems that the bulls have won the day.
I admit my patience is being sorely tested.
It has in the past and I will continue to look for value, but running with the pack has certainly paid off this year.
Here is hoping you had a joyous Christmas with family and friends and that 2024 will be as or more prosperous than 2023.
