As we wrap up the year, we reflect on our 2024 outlook, “Prepare, Not Predict,” and the dynamic and unpredictable nature of the financial markets. Our 2024 themes manifested with varying impact. Inflation remained in the Messy Middle and stabilized within a manageable range. The Federal Reserve (the Fed) ultimately began to cut interest rates in September, which brought fixed income yields broadly lower from 2023. In 2023, we emphasized the importance of Preparation over Prediction, a sentiment that proved prescient as we navigated a landscape marked by continued volatility, unexpected geopolitical events and a presidential election. Yet markets broadly performed quite well, and the economy remains resilient, despite the recent uptick in unemployment. Our third theme of Concentrated Consequences carries through as
we turn towards 2025.
