On Money & More – November 2024

SO FAR IN 2024, the S&P 500 has hit a new all-time high 44 times. And even though California Street is a long-way from Wall Street, at Cutler we have a great deal of gratitude for this extended bull market. After all, stock ownership in the US has never been higher. Gallup estimates that 61% of US adults own stocks, meaning that for many Americans, the stock market rally has directly benefitted their standard of living.

Owning equities has historically shown to be one of the greatest ways to build wealth. Just look at some of these numbers. Over the past twelve months, the S&P 500 Total Return (gross, through 9/30/24) was up an incredible 19.75%! Over the past 10 years? An amazing 16% annualized! From inception in 1957 through year-end 2023, this broad-based index has averaged 10.26% per year- spanning nearly 70 years! (source: S&P Global)

A few years ago, Warren Buffett said, “For 240 years, it’s been a terrible mistake to bet against America. The babies being born today are the luckiest crop in history.” We would agree, and returns of the S&P 500 have reflected that optimism.

We all know that stocks won’t always be at all-time highs. They won’t always have returns that look this rosy. There will be turmoil, recessions, and wars. We’ve recently seen a pandemic and numerous economic calamities. And as we ride through these set-backs, keep in mind the long-term value that stocks have provided. We advise our clients to keep what they need in less volatile investments, but with their stock portfolios to try and weather the storm. Remember that the US economy has always come back and led the global economy toward recovery and growth. And for that, we are very thankful.

All opinions and data included in this commentary are as of October 11, 2024 and are subject to change without notice. The opinions and views expressed herein are of Cutler Investment Counsel, LLC and are not intended to be a forecast of future events, a guarantee of future results or individual investment advice including the asset allocation provided. Nothing herein should be construed as tax advice. This article is provided for informational purposes only and should not be considered a recommendation or solicitation to purchase or sell securities. This information should not be used as the sole basis to make any investment decision. The statistics have been obtained from sources believed to be reliable, but the accuracy and completeness of this information cannot be guaranteed. Investing involves risk, including the potential loss of principle. Neither Cutler Investment Counsel, LLC nor its information providers are responsible for any damages or losses arising from any use of this information.