TOTAL VIEW ADVISORS

Dear Clients and Friends, Please enjoy the latest commentary which will be found in the Pinecrest Tribune. We wish you a healthy and prosperous 2025!

The final months of 2024 were expected to be a time of transition for investors. The Federal Reserve pressed forward with their first set of interest rate cuts since March of 2020, while U.S. voters elected a new administration after another contentious election. While many anticipated that such major events would result in heightened volatility, the financial markets largely took these headlines in stride. The fourth quarter completed not only a stellar 2024 for the stock market, but the S&P 500's first back-to-back years of 20%+ gains since the late 1990s.

Meanwhile, bonds pulled back as intermediate and longer-term interest rates rose, though that only marked a return to price levels previously seen over the past couple of years. Since bond prices move inversely to interest rates, many assumed the more accommodative Federal Reserve lowering rates would provide a tailwind for bonds. However, while the shorter end of the yield curve that is more sensitive to Fed policy did decline as expected, longer-term yields actually rose.

In the fourth quarter, commodities were largely contained within their prevailing ranges, with the exception of cryptocurrencies such as Bitcoin that broke to new highs. Crude oil spent much of the period bouncing around between $67 and $72 per barrel. Similarly, the precious metals stalled out after enjoying a nice rally earlier in the year. Gold was essentially flat during the quarter and silver was down around 7%.

Most investors will likely look back upon 2024 with fond memories. After consecutive years of the S&P 500 gaining more than 20%, it may be tougher for stocks to maintain the same trajectory without experiencing more bumps and volatility along the way. Yet, investors largely remain bullish, with a record number of participants in the November Consumer Confidence report expecting equity prices to be higher 12 months later. Sentiment may, therefore, be a little too optimistic heading into 2025, increasing the risks if reality does not measure up to the loftier projections. However, the U.S. economy continues to show resilience and there is hope that more rate cuts by the Federal Reserve and a new administration in Washington may help to bolster economic growth.

Gustavo J. Vega, CFP®, AIF, CEPA CERTIFIED FINANCIAL PLANNER™

Managing Partner, Total View Advisors Direct: 786.264.4954, Fax: 786.364.6599 The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Prior to making any investment decision, please consult with your financial advisor about your individual situation. Any opinions are those of the author, and not necessarily those of Raymond James. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This article was written by Gus Vega, CERTIFIED FINANCIAL PLANNER® professional, Total View Advisors and Branch Manager with RJFS and Danny Brea, CERTIFIED FINANCIAL PLANNER® professional, Total View Advisors and Financial Advisor with RJFS. They can be reached at 786.264.4954, 9155 S. Dadeland Blvd. # 1404, Miami, FL 33156. Total View Advisors is not a registered broker dealer and is independent of Raymond James Financial Services, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA / SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. There is an inverse relationship between interest rates and bond prices. Generally, when interest rates rise, bond prices fall, and vice versa. There are special risks associated with investing in bonds such as interest rate risk, market risk, call risk, prepayment risk, credit risk reinvestment risk, and unique tax consequences.

Investing in commodities is generally considered speculative because of the significant potential for investment loss. Their markets are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization's initial and ongoing certification requirements to use the certification marks.