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Hope you are all doing well. The major U.S. stock indexes climbed for the second week in a row, and a rally on Thursday pushed the S&P 500 above the record high that it had set seven weeks earlier. The Dow and the NASDAQ recorded weekly gains of around 2% but remained around 1% below the records they set last month. It is conference championship weekend in the NFL, and  the first time in over 30 years Washington is in it. I have broken down this week’s update using quotes from one of if not best to ever wear their uniform, John Riggins.

When things are going awry, it’s time to put the blinders on and do your job. Just do your job.

It was a chaotic week. The transition of power in the US brings change and with change comes uncertainty. This was reflected in the data this week. U.S. consumer sentiment weakened in January for the first time in six month. Relative to the previous month’s survey, a growing number of participants said that they expect inflation and unemployment to rise this year.  We are likely headed into a period of market volatility. It is easy to let your emotions get the best of you when investing. Don’t buy into the negativity. In times of volatility it is best to stick to your plan. Corporate earnings have been great, the labor market remains strong and inflation seems to be manageable despite the pessimism out there. If you have money in the market that you know you will be spending in the next few months then this isn’t a bad time to replenish your safe investments. However, if it is longer term money, stay invested and drown out the noise.

Today, professional football is about profit and making money. But it’s not about how much money you spend, it’s about how wisely you spend it.

We are into earnings season. The fourth-quarter net income of S&P companies is expected to rise by 12.7% compared with the year-ago. Rising earnings supports higher stock prices. Profit is important but so is how companies are managing their expenses. For example, Meta was one of the bigger outperformers. The stock rose 3.76% on the week. The company announced on January 14th plans to cut approximately 5% of its workforce in 2025. They are specifically targeting “lowest performers” as part of a cost-cutting measure. Since then stock has gone from $588.55 on the 14th to an all time high on Friday of $652. Stocks remain an attractive investment. The best thing to do in a bull market is buy and hold, not try to market time. With the recent run up in stocks I would not be surprised if we get a pull back or correction in the coming weeks. If we do, don’t panic, stay invested. Again, any dips should still be viewed as a buying opportunity.

If you’d like to speak about your investments or your plan, or if it has been a while since our last review. Please use my calendar link below and schedule a phone or zoom appointment.