2024 was highlighted by lower inflation, strong earnings growth, a robust consumer, and declining interest rates. Market participation broadened relative to 2023; the technology sector contributed 43% to the S&P 500's total return in 2024, compared to 55% in 2023.
Economic activity expanded in December, ending 2024 on a high note. Third-quarter GDP was revised higher to 3.10%, job gains in November rebounded from October, and weekly jobless claims remained muted, averaging 226K/week.
Following 2016 and 2020, it would have been difficult to predict a more controversial, quickly evolving presidential cycle, but it appears 2024 is shaping up to do just that. With the velocity of information, news outlets are quick to project, pushing the line with partisan narratives and looking to stir division among American voters.
According to the Investments & Wealth Institute 2021 Investor Report, a sizeable 82% of wealth management clients surveyed indicate that the pandemic has impacted what they feel is important or how they view the future. This shift in mindset is coinciding (or perhaps driving) growing dissatisfaction with financial advisors — particularly among ultra-high-net-worth clients.
At some point in time, many financial advisory business owners will find themselves at a crossroads. Whether it is looking for ways to grow their businesses, feeling overwhelmed by the day-to-day tasks that may distract them from client-servicing or are thinking about succession planning, take a deeper look into the emotional aspects of selling your advisory business.