To Our Valued Clients,
I am pleased to update you on another year of progress on our shared journey toward achieving your most cherished lifetime financial goals. As always, Impel Wealth Management's approach remains focused on these goals rather than reacting to short-term fluctuations in the economy or markets. This strategy will continue to guide our efforts throughout the coming year and beyond.
Core Principles
- We are long-term, goal-focused, and plan-driven investors. Our core investment policy revolves around maintaining age and risk-profile-appropriate diversified portfolios of high-quality businesses.
- We recognize that the economy and markets are unpredictable. Since consistent forecasting or market timing is not feasible, we believe the best way to capture the long-term premium returns of equities is to endure their occasional, significant declines, which have historically proven to be temporary.
- We believe the best way to manage our emotions and behaviors through the inevitable bouts of market volatility is to create sufficient liquidity during upturns in the market, allowing us to weather these temporary downturns.
- Our approach is not reactionary. As long as your long-term goals remain the same, our plan for achieving those goals remains steadfast.
Current Commentary
- The past year has been another positive one for diversified investors. However, as you can see in the chart below, many headline news events could have caused investors stress and anxiety in an otherwise constructive year.
- Stock market returns continued to be driven primarily by a few large technology stocks. As the year concluded, we saw signs of broader market participation, which is certainly encouraging.
- With the presidential election result being clear and uncontested, the economic backdrop remained favorable. The job market stayed relatively strong, despite signs of cooling due to tighter monetary policies. Corporate earnings and dividends reached record highs, with projections for further growth in 2025.
- Some investors expressed concern toward the end of the year, fearing that the equity market had become overly optimistic, reflected in stretched valuations. While valuation metrics can be useful for broad insights, we emphasize that they should not dictate short-term decision-making. As always, we encourage you to stay focused on your long-term plan.
- Inflation remains a concern, as Federal Reserve Chair Jerome Powell noted in December. While the market reacted negatively to this, we believe this is a prudent acknowledgment of economic realities.
- Despite the United States' ongoing fiscal challenges, consumer financial health remains surprisingly strong. The household debt service ratio, a key indicator of consumer debt burden, recently fell to 10.1% in Q3 2024, near a 40-year low.
- While it’s unlikely that the equity market can continue to deliver the nearly 16% annual returns experienced since the March 2009 lows of the Global Financial Crisis, we do not require such extraordinary returns. Our long-term planning remains conservatively based on more modest return assumptions.
As we look ahead to 2025, we wish all our clients—and friends, as we consider you to be—a healthy, happy, and prosperous year ahead. We are always here to assist you with any questions or concerns. Thank you for your trust in us. It is a privilege to serve you.
Warm regards,
© 2025 Jesse Hurst
Senior Wealth Manager
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The views stated are not necessarily the opinion of Cetera and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
Featured Blog Image Source: iStock.com/Radu Bighian