Arrowhead Wealth Partners Newsletter - January 2024

Arrowhead Wealth Partners Newsletter - January 2024

January 05, 2024

Happy New Year!

We hope that you and your family had a wonderful holiday season, and the new year is off to a great start!

In this newsletter, we will share some helpful information on the markets during election years, and shed some light on the new contribution limits for retirement accounts in 2024.

The Arrowhead Team

Navigating the Market: Unveiling the Dynamics of Stock Performance in Election Years

As we find ourselves in the midst of another election year, the stock market is once again under the spotlight. Investors often wonder how political changes may impact their portfolios, and historical data provides valuable insights into the relationship between election cycles and market performance.

The Historical Landscape: A Glimpse into the Past

Looking back at previous election years, a pattern emerges. While it's crucial to note that the stock market's behavior is influenced by a multitude of factors, election years often bring a degree of uncertainty that can sway investor sentiment.

Historically, the stock market has exhibited heightened volatility in the months leading up to an election. This volatility can be attributed to uncertainties surrounding economic policies, potential regulatory changes, and the overall direction the new administration may take.

Election-Year Trends: What the Numbers Tell Us

  1. Initial Uncertainty and Volatility: In the early phases of an election year, markets tend to experience increased volatility. Investors may react to political debates, candidate policies, and the uncertainty surrounding the outcome.
  2. Post-Election Rally or Correction: Once the election results are known, the market typically responds with a rally or correction. The direction depends on various factors, including the perceived impact of the elected candidate's policies on the economy and business sectors.
  3. Historical Performance: Data from past election years reveals that, on average, the stock market has shown resilience and an ability to recover from initial uncertainties. Over the long term, the market tends to focus on economic fundamentals and corporate performance.

Strategies for Investors: Weathering the Storm

  1. Diversification is Key: In times of heightened uncertainty, a well-diversified portfolio can help mitigate risks. Allocate your investments across different asset classes to reduce vulnerability to specific market movements.
  2. Stay Informed, Stay Calm: Keep a watchful eye on economic indicators, policy proposals, and global events. Staying informed allows investors to make well-informed decisions and avoid reacting impulsively to short-term market fluctuations.
  3. Long-Term Perspective: Remember that investing is a marathon, not a sprint. While election-year dynamics may introduce short-term volatility, maintaining a long-term perspective and focusing on the fundamentals of your investments is crucial.

In conclusion, election years are part of the broader market cycle, and understanding historical patterns can provide a roadmap for navigating potential challenges and opportunities. By staying informed and adopting a prudent investment strategy, investors can position themselves to weather the storm and capitalize on long-term market trends.

2024 Retirement Contribution Limits

As expected, the IRS has increased contribution limits across various retirement accounts. We wanted to share that information with you.

 

Limit

Catch Up (Age 50+)

Traditional / Roth IRA

$7,000

$1,000

401(k) / 403(b) / 457 / TSP

$23,000

$7,500

SIMPLE IRA

$16,000

$3,500

There are additional considerations that come with these contribution limits. If you would like to review your current strategy to make sure you are making the most of your current savings, please do not hesitate to reach out to our office!

Toys for Tots Drive 2023

Thank you for your donations to our Toys for Tots Drive at the end of the year! With your help, we were able to donate 2 overflowing boxes of toys to kids for the holiday season. Thank you again for your help and support!

Upcoming AWP Events

We hope you can join us for these upcoming events!

2024 Market Outlook with First Trust Investments

Wednesday, January 17th at 5:00 PM

Arrowhead Wealth Partners - 7111 W Bell Rd Ste 106 Glendale, AZ 85308

Light refreshments will be provided!

Click here for more information and to RSVP

Market Update with JP Morgan Investments

Wednesday, February 21st at 5:00 PM

Details and RSVP information will come out closer to the event

Light refreshments will be provided

Market Update with State Street Investments

Wednesday, March 20th at 5:00 PM

Details and RSVP information will come out closer to the event

Light refreshments will be provided

              AWP Family Updates

Griffin (Cody & Amanda Heins) celebrated his first Christmas this year! He enjoyed spending the time with family. His favorite present this year was the wrapping paper and the empty boxes! He is working on figuring out how to crawl, keeping Cody & Amanda on their toes.

Liam (Jordon & Shea Wheeler) turned 1 year old on December 8th, double dipping birthday and Holiday celebrations last month! He met Santa this year, not sure how much he enjoyed it! He started trying to walk this month, but seems pretty content crawling for now.

Arrowhead Wealth Partners was founded to serve the needs of ordinary people who want well-regarded professionals to manage their investments and guide them towards successfully meeting their financial goals.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk