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What to consider about your investments in 2024

February 06, 2024

2024 is Here!!!

Let the market prognostication begin.

 

A new year always brings with it a forward look into what the investment world might look like, with a backdrop of domestic politics (Presidential Election) and mix in geopolitical unknowns (think Ukraine/Russia, the middle East, China/Tiwan), I suspect 2024 will be a year to remember!

 

How will these things affect me is a question you might be asking yourself…and with good reason. There are, it seems, more unknowns this year than in the past… Change is the only real constant, so be mindful of this change and try not to overreact… Many times the “tried and true’ things help remove some of the stress of the future.

 

Allocation of assets between asset classes. Thought of another way, “Don’t put all your eggs in one basket” Allocation of your capital between different types of things can help smooth the ride… Stocks, Bonds, CD’s, Fixed Index Annuities, Money Markets and Variations of those can help you Ride out the storm. Everything is about a Trade Off. What is the benefit you receive for allocating your capital to these various assets? What are the risks? Good things/ Bad Things…

 

Debt- Whats the difference between “Good” Debt and “Bad” debt? Is there such a thing? One can make the argument yes, there is. Credit Cards vs Mortgage might be an example. Paying for a depreciating asset with cash vs Financing the depreciating asset also might be an example? $35,000 for a new car paid in cash, or finance the car at 2.5% interest?? What is your Opportunity cost for such a transaction? Do you know? Do you care? Should you care?

 

Liquidity or Cash on Hand is also a topic to keep in mind. How much would need if you lost your job Friday, and it would take you 3 months to find a new job? Do you want to be forced to sell an asset at an unkown future price and realize a gain that would be taxable? OR a loss? Having cash on hand that makes sense for you and your situation is a tried-and-true method to reduce stress.

 

These are just three “Oldies” but “Goodies” there are of course many more…so as the talking heads throw headlines for what to do in 2024, remember that the “Oldies” are old for a reason, they work. No matter the Economic, Geopolitical or Political nature of today…

 

 

 

Investing involves risk, including the potential for loss of principal.  Past performance does not guarantee future performance.  Asset Allocation cannot eliminate the risk of fluctuating prices or uncertain returns.

Scott McKeever is a registered representative and investment adviser representative of, and securities and investment advisory services are offered solely by Equity Services, Inc. [ESI], known as Vermont Equity Services in WI, NH, CO & MO,  Member FINRA/SIPC, 1 N. Franklin Street, Suite 3450, Chicago, IL  60606. PH: 312-236-2500. Weyers McKeever Financial Partners is independent of ESI.

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