The stock market rallied in recent months, led by technology, AI, and meme stocks. Since the correction bottom in early April (-18.9% from the high), the S&P 500 gained more than 30%, bringing year-to-date performance to +14.8%.
The wide trading range this year, with sharp swings and reversals, underscores just how volatile conditions remain. We expect this to continue.
Strength in bonds
Meanwhile, bonds quietly delivered strong results. The Bloomberg Aggregate Bond Index is up +6.1% through quarter-end, on pace for its best annual return since 2020. Higher coupon income and a modest decline in interest rates fueled gains.
A mixed economic outlook
Economic data is mixed heading into year-end. Employment is softening. Whether this signals an economic slowdown or simply normalization after the unusually tight 2021-2023 labor market remains to be seen.
The Fed began cutting rates to counter weakness. But with inflation still near 3%, the extent of easing is uncertain. AI and data centers continue to drive remarkable economic growth, though valuations now resemble late-1990s “tech bubble” levels.
A steady hand
At DMKC, our approach remains steady. We don't chase areas of market euphoria. Instead, we focus on attractive valuations, durable business quality, and reliable earnings power—so we’re prepared whether the next market leg is higher or lower.
As we approach year-end, keep the following in mind:
Required minimum distributions (RMDs) for those 73+, and qualified charitable distributions (QCDs) must be processed by year-end. If you haven’t completed yours, please call us by Dec. 15 to finalize.
If you have a taxable account and would like to review tax-loss harvesting opportunities, we’d be happy to run an analysis.
We can also help coordinate contributions, distributions, Roth conversions, and tax planning as year-end approaches.
If you have any questions, we’re always happy to talk with you. Contact us at 800-998-9773.
Data Sources: Koyfin, Black Diamond, FRED, Allied Calculations