In Markets "In a Nutshell"

Markets “In a Nutshell” for March 24, 2025

Investment Week at a Glance

Stocks finished higher for the week. The Dow Jones Industrial Average rose 1.2%, the S&P 500 was up 0.5%, and the NASDAQ rose 0.2%. Foreign stocks (MSCI EAFE) were also up, rising 0.7%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.25%.  (Data source: Wall Street Journal)

Fed Leaves Rates Unchanged

The Fed had its most recent meeting last week and left rates unchanged as expected. One surprise for markets was the Fed continuing to say they see two rate cuts in 2025 as well as 2026. The Fed also lowered its economic growth forecast as well as raised its inflation projection. These were both due to the tariff policy that the Trump administration has begun to implement. The Fed also announced it will slow its balance sheet reduction program, also known as quantitative tightening (QT). This is seen as an easing of monetary policy giving the Fed the ability to participate in U.S. Treasury bond auctions which typically support bond prices. Overall, the market was not caught off guard by much of what Fed Chair Powell had to say.

Diversification Continues to Support Portfolios

U.S. stocks are down for the year but there are other asset classes that have performed well. International equities continue to outperform the U.S. stock market by double digits for the year. Other asset classes that have outperformed U.S. stocks are U.S. bonds which have had a strong start to the year with expectations of rate cuts coming in 2025 & 2026. One of the largest outperformers of the year has been gold. Gold has had a strong rally to push the price of 1 oz above $3,000. Gold is up nearly 13% for the year and is up over 37% over the last 12 months. Investors may continue to diversify their portfolios as U.S. mega-cap names have been hit the hardest.

Hyundai to Announce $20 Billion Investment in U.S.

Hyundai, a South Korean automaker, is planning to announce a $20 billion investment in the U.S. This comes as President Trump continues his push for tariffs and bringing manufacturing back into the United States. Part of the investment includes a steel plant in Louisiana which is set to hire roughly 1,500 employees. This comes as Taiwan Semiconductor Manufacturing Co. and Japan’s SoftBank have also committed to investments within the United States in the past couple of months as tariffs seem more and more likely to be long-lasting. (CNBC)

Quiz:

Over the past 5 years what is the return on Gold? (Scroll Down for Answer)

  1. 27%
  2. 43%
  3. 61%
  4. 82%

 

 

 

 

 

 

Answer below.

 

 

Have a Great Week!

 

 

 

 

 

 

 

Answer:

4. 82%, Gold has had a strong run the past 5 years despite getting little attention in the news. Despite all the different market headlines Gold has had a steady run higher these past 5 years.

 

 

 

 

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