Reflection and Fed's December Decision

Reflection

At Bond&Devick, teamwork is central to everything we do. Collaboration and shared responsibility define how we work, including contributing to our monthly communications. This month, we are pleased to feature Sabrina Fay, who recently celebrated her first anniversary. Sabrina has made a positive impact over the past year, and we have enjoyed getting to know her and her family. If you have not met her yet, we hope you will do so soon.

For many, this is a natural time of year to reflect on the last year. As I reflect on my first year with Bond&Devick, I am filled with gratitude and admiration. One of the most rewarding aspects of my role has been the opportunity to connect with so many of you. Your stories, insights, and trust have provided invaluable lessons and have reinforced the core values that first Penny, then RJ and Andy, and now the entire Bond&Devick team practice on a day-to-day basis. 

Whether it is in client meetings, volunteering together, or celebrating successes with nonprofit partners, I’ve observed a recurring theme: the importance of building and maintaining strong relationships. The lyrics "Make new friends, but keep the old, one is silver & the other gold" have been a constant reminder of this principle. Our firm thrives on the balance of welcoming new clients while cherishing long-standing relationships. Each interaction, whether with a new or familiar face, enriches our community and strengthens our collective future.

Our dedication to values-based financial planning and investing coupled with personalized tax planning has been particularly impactful. These approaches ensure that your investments align with your values and that your financial plans are tailored to your unique circumstances. This commitment to individualized care is at the heart of what we do, and it is why I am so happy to have joined this team. 

Looking ahead, I am excited about the continued growth and success we will achieve together. Our strategy remains rooted in authenticity, and our dedication to your financial well-being is unwavering. Thank you for allowing me to be a part of your journey and for the trust you place in us. Here's to many more years of shared success and meaningful connections. ~ Sabrina

The Bond&Devick Team wishes you health, happiness, and peace and we look forward to working with you in the new year. 

Fed's December Decision

On Wednesday, December 18th, Federal Reserve Chair Jerome Powell announced another 25-basis point rate cut to close out 2024. In an uncommon split vote, the committee reduced rates to the range of 4.25% - 4.50%, marking their third consecutive cut. Additionally, the committee revised its 2025 guidance with the markets now pricing in two rate cuts as opposed to the previously anticipated four expected cuts. Inflation remains elevated and the uncertainty around policy changes of the incoming Trump administration remains top of mind. Powell stated that they will be carefully assessing incoming data and watching policy changes which will impact the extent and timing of future cuts. He emphasized that the committee is satisfied with the way 2024 is ending and believes the U.S. economy remains strong.

The equity markets took a tumble to close out the trading day with the S&P closing down nearly 3%. We expect to see continued volatility in the equity markets to close out 2024 as they digest the interest rate outlook going forward. The reduced expectations for future rate cuts created a backup in interest rates, which has, temporarily at least, caused bonds to sell off as well.  We do not anticipate a sudden increase in interest rates over the foreseeable future and believe our diversified portfolios are well-positioned going into next year.

We hope you enjoy your time celebrating the season with family and friends.