Broker Check

2024 Market Update: Trends, Opportunities, & Strategies

January 09, 2024

Contributors: 

Thomas Seneca, founding partner of TM Wealth Management along with Matt Haertzen and Brad Sorensen from Cornerstone Portfolio Research. Matt brings extensive experience as a former CIO of a billion-dollar endowment fund, while Brad offers insights from his 20 years at Charles Schwab in market research and client account management.
Q: What were the key elements that drove the markets in 2023, and how do you view the possibility of a continued rally in 2024?

A: In 2023, the "Magnificent Seven" tech stocks played a pivotal role in driving market gains. Brad Sorensen notes that while 2024 may face bumps along the road, the expectation is for a positive year. The discussion emphasizes the convergence of broader market performance with the Magnificent Seven, indicating a more balanced outlook.


Q: How do you view the potential impact of the Federal Reserve's actions and the upcoming 2024 election on portfolios?

A: Matt Haertzen underscores the importance of monitoring the Fed's rate-cut forecasts and the potential effects on the market. The conversation touches on the volatility expected with the 2024 election, advising clients to focus on long-term economic fundamentals rather than short-term noise.


Q: The bond market has faced challenges in recent years. How do you propose adjusting bond strategies for improved portfolio stability?

A: Matt Haertzen addresses concerns about bonds and suggests adjustments, including diversification and consideration of adjustable-rate bonds. The emphasis is on maintaining a long-term perspective and not reacting impulsively to short-term market fluctuations.


Q: How do you view international markets, and what opportunities do they see globally?

A: Brad Sorensen discusses the historically extended cycle of US stock outperformance and advocates for global diversification. We see the potential advantages of exploring international markets and stress the need to watch for positive surprises that may shift investor focus.


Q: What are the key indicators and factors that investors should monitor for insights into 2024 market trends?

A: Brad Sorensen introduces the "snowball analogy," emphasizing the importance of monitoring economic growth, employment trends, and inflation. Matt Haertzen adds perspectives on earnings growth and profit margins, providing a comprehensive view of the factors driving the market in 2024.


Q: In conclusion, what is the overarching advice from TM Wealth Management for navigating 2024?


A: We emphasize the significance of a well-structured and diversified portfolio tailored to individual financial goals and risk profiles. The key takeaway is to stay focused on long-term strategies, ignoring short-term market noise, and being prepared to adapt to changing market dynamics. When we've got positive markets, we open up the sale and we ride the winds. It feels like, this year, we're going to have to pull the oars out and start to row to be able to protect portfolios, but also to get the returns that we might want to get within specific client portfolios. So it will be more of a rowing year than a sailing year.


This Q&A format provides a concise and organized overview of TM Wealth Management's 2024 Market Outlook, covering key topics and insights. 

Watch the full 30-minute webinar HERE.