Let’s take a look at the Q2, 2024 quarterly report (go here to watch a video report of it). Overall, major stock markets have stayed hot going into summer. And I’m sure you’ve heard about “the stock market” making new highs at several points throughout the first half of the year. Let’s dive into those markets a bit. Global stocks slowed after their strong start to 2024 with emerging markets leading the pack. In the US, where at the time of this recording, the S&P 500, the Dow, the Nasdaq, and the Russell 2000 are all a touch off their respective record highs.
Looking behind the markets for the first half of ‘24: The Federal Reserve held interest rates steady, but revised its outlook for rate cuts amid lowered inflation concerns. Last week we got news that the CPI – consumer price inflation – for June fell. The CPI is a measure of average prices paid by those living in urban areas for a basket of commonly used goods and services. It was the first time in four years that consumer prices went down. Fed Chairman Powell said the CPI reading increased the Fed’s confidence that inflation is getting under control. Globally, the Bank of Canada and the European Central Bank cut interest rates after several months of holding them steady. Will we see the Fed follow suit? That remains to be seen, but we have seen banks dial back the fixed rates of return they’ve been offering on savings products, like CDs and savings accounts. Possibly in anticipation of lower Fed rates.
If you have any questions about global market forces – the big picture macro events – and how they impact your plans for retirement, reach out to me here.