Federated Hermes’ Post

2024 has been eventful for investors, yet it has fueled positive momentum in equity markets. As we wrap up a year of strong stock performance, here are our reflections on the past 12 months and how this may shape market trends in 2025. https://bit.ly/3P2T0Bm

Any stock market investors out there? Check out out this system to protect and grow your wealth through market euphorias and crashes. https://lnkd.in/gGjn5ZfF

"Historically, the stock market tends to perform well after interest rate cuts, which is why many investors are optimistic, and we've seen positive reactions recently. However, there have been exceptions, such as in 2001 and 2007, when the results didn’t match expectations. This highlights the importance of maintaining a balanced approach and managing risk carefully." Watch Michael Sasaki, CFA discuss recent market performance and explain this week's chart.

In an article entitled "The Stock Market Is Priced for Middling Returns From Here On" Jack Hough echoes an increasingly expressed expectation for inadequate investment returns from the standard measure of the market. Mr. Hough cites JPM who forecasts that the "S&P 500 will return 5.7%, on average, over the next decade". If the bellwether market index is expected to deliver sub-6% returns over the next decade, while asset owners need at least 7% to simply fund their organization's minimum obligations and maintain purchasing power, that’s a funding mismatch that status quo, commonly utilized, tracking error-constrained public equity approaches will fail to resolve. Time to consider and evaluate outcome-driven, absolute return-oriented, long-only equity strategies that strive to deliver results that at least satisfy one's financial commitments, rather than mimic the returns of a market index widely forecasted to be insufficient.

So, is the stock market in a bubble...? Simple question with a complicated answer. The S&P500 is up more than 1000% since the low of the GFC in 2009. But don't rush to answer the question and particularly don't rush to act. In December 1996, Fed Chair Alan Greenspan made the famous "irrational exuberance" comment about the stock market. Despite that, the S&P500 climbed more than 100% in 1997-99 before adjusting in 2000. So, stay invested and if you're worried about valuations, reduce your exposure. Never exit completely. Because we may find out we were in a bubble in a week or... in a few years. We just don't know.

U.S. stock indexes saw significant gains in November, marking the sixth positive month out of the past seven. Learn more about new record levels in this past weeks Capital Markets Snapshot! #creatinglegacies #capitalmarketssnapshot #bluecrest

Major Stock Markets: Earnings Yield vs. Cash Yield Table In today’s dynamic markets, investors need to weigh the potential returns of equities against the safer option of holding cash. Investors can make more informed decisions by comparing Earnings Yield (EY) vs. Cash Yield.

Morgan Stanley Says Unclear Growth Signals to Cap Stock Gains - https://lnkd.in/gsGGCjiG A double whammy of economic uncertainty and a weak period for corporate earnings forecasts is likely to cap stock market gains, according to Morgan Stanley’s Michael Wilson. Read More: Morgan Stanley Says Unclear Growth Signals to Cap Stock Gains

Infomative... Indian Stock Market...... Did you know ❓️❓️ Indian stock market is now dominated by the young investors of age below 30 years . While, participation of 55+ age group dip .. Dominance of young investors in Indian stock market..... 👇👇

We covered a lot of ground in just a few minutes on Bloomberg Surveillance this week. Starting at the 1:55:50 mark, check out my views on the markets post-election, the future of the economy, and my advice for investors. Since mid-July, small- and mid-cap stocks have outperformed the S&P 500 – and we continue to like the portfolio optionality that these smaller companies provide to longer-term investors.  https://lnkd.in/gSa-3s6x