Third Quarter 2024 Market and Economic Perspective Highlights

At Incline Financial Planning, we’ve partnered with XYPN Invest to strengthen our investment portfolios. Their expertise and insights are invaluable for navigating the complexities of today’s financial markets. Check out their latest 3Q 2024 Market Commentary for an in-depth look at recent economic trends, stock market performance, and investment strategies. See below for a brief overview, with the full report available at the link below.

Keeping a Balanced Approach

Stocks across global markets have seen impressive gains over the past year. With inflation closer to the Federal Reserve's 2% target, the Fed responded by reducing the interest rate by 50 basis points in September, aiming to maintain economic stability amid a slowing labor market.

Positive Signals

Consumer Price Index (CPI) inflation fell to 2.6% in August, allowing the Fed room to ease monetary policy. Additionally, parts of the yield curve have reverted to a more traditional upward slope, indicating bond investors are now compensated for long-term risks—often a sign of market stabilization.

Reasons for Concern

Despite favorable inflation data, the Fed’s focus has shifted to the labor market, with unemployment ticking up to 4.2% in August. In addition, investors are cautious amid geopolitical uncertainties and the upcoming U.S. elections. Globally, China’s stimulus package may also impact markets, contingent on its effectiveness in reviving consumer confidence and supporting its property sector.

For a full report, please click here.