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12/16/2024

DIVO Commentary November 2024

COMMENTARY The S&P 500 closed November as the best month of the year so far with every one of the 11 sectors notching a green month. With the uncertainty of the election and another FOMC (Federal Open Market Committee) meeting in the rear-view mirror, investors went full risk-on and didn’t look back. It probably helped that earnings season wrapped up with companies in the S&P 500 growing an average of 5.8% and more than half of the index members beating estimates. The VIX fell throughout the month from the low-20s back to the low-teens, where it spent much of the year. Looking ahead, seasonal strength may continue into the "Santa Claus" market period, though offsetting factors like tax-loss selling and geopolitical tensions can never be overlooked.
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01/16/2025

DIVO Commentary December 2024

COMMENTARY While the equity rally that was resilient throughout most of 2024 seemed to fade towards the back half of December, collectively 2023 and 2024 closed out their best back-to-back years since the turn of the century. Admittedly, December was off to a good start in the equity markets until the Federal Open Market Committee (FOMC) meeting mid-month conveyed fewer rate-cuts for 2025 than anticipated. On one hand, this conveys a constructive outlook for the economy – that it can continue to show modest growth without aggressive rate-cutting – but on the other hand it also weighs on investors outlook for companies to continue to grow their revenue and earnings. 2025 brings a fresh set of opportunities to investors, beginning with a new administration, Q4 earnings and an another FOMC meeting, all before month-end.
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