Market Momentum Shifts Gears in 4Q24
The final quarter of 2024 saw market leaders solidify their gains, with top-performing sectors like Communication Services, Consumer Discretionary, Financial, and Information Technology outpacing the S&P 500’s 2.1% growth. Meanwhile, rising interest rates took a toll on value-driven sectors such as Real Estate, Utilities, Consumer Staples, and Energy, which all declined during the quarter.
Regulatory Changes Impact Healthcare
Healthcare, too, felt the pinch, as anticipated changes in the regulatory environment are expected to unfold over the next few years. Despite this, market breadth showed improvement overall.
A Year of Diversified Growth
In contrast to 2023, when the Magnificent 7 – clustered in Communication Services and Information Technology – drove results, 2024 saw a more diversified growth landscape. Consumer Discretionary and Financials joined the fray, while Utilities came close to a 20% return, and Industrials and Consumer Staples delivered double-digit gains for the year.
Looking Ahead to 1Q25
Historically, advancing markets are led by growth sectors. With this in mind, our top sector recommendations for the first quarter of 2025 strike a balance between value and growth. By diversifying your portfolio, you can position yourself for success in the months ahead.
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