FBB Capital Partners' November 2024 Insights: Market Commentary & Forbes/Worth 2024 TOP RIA Lists

Dear Clients and Friends,

The most frequently asked question by clients all year has been: what might a new administration’s policies mean for the economy and the markets?

In the couple weeks following the election, the U.S. stock market was up significantly the first week and spent the second week teetering between flat to slightly down while investors, politicians, and constituents weighed the potential pros and cons of the changing administration.

Longer-term yields have moved significantly higher over the past month as markets are repricing the likelihood of higher deficit spending based on a continued level of current spending (notwithstanding the new DOGE department) and the odds that tax (rate) increases are unlikely to change in the post-2025 Trump years. Higher deficits and higher rates mean higher interest expense which leads to, well, higher deficits and higher debt levels. If bond investors worry about a higher level of indebtedness and the potential for stickier long-term inflation (tariffs) then they will likely command higher interest rates.

For the average individual investor, we believe the opportunity to continue to build out the less volatile fixed-income portion of a portfolio at generational high interest rates remains a compelling one. We are also not of the opinion that investors should dramatically reduce their equity exposure in the face of policy uncertainty. Markets are nonpartisan so it is wise to continue to focus on your long-term investment strategy. Historically there has not been a strong correlation between election results and market performance. We continue to encourage clients to reach out to their Portfolio Managers to discuss their current investment policy to ensure that posture continues to be aligned with short and long-term goals.

In addition to the thoughts above, we wanted to share that we were recently featured in Forbes' Top RIA Firms of 2024 and Worth‘s Top RIA Firms of 2024— honors that reflect our dedication to serving our clients with integrity and excellence. We're grateful for the trust our clients place in us and look forward to many more years of dedicated service. If there are people in your life who you think would benefit from speaking with us, please call or email us at info@fbbcap.com or email your Portfolio Manager directly.

As you gather with family and friends this Thanksgiving and holiday season, please know how thankful we are for the continued confidence and trust you place in your FBB Team, we do not take it for granted.

Wishing you a peaceful and restful Thanksgiving,

Mike Mussio, President

FBB Capital Partners

4520 East-West Highway, Suite 450

Bethesda, MD 20814

301-657-8870

market review & outlook webinar:

Nvidia Is Clear Winner In a Lackluster Big Tech Earnings Season (Mike Bailey is featured)

Google has nice growth this year and expect the same next year, says FBB Capital’s Mike Bailey

Procter & Gamble (PG) Faces Pricing Pressure and Consumer Fatigue (Mel Casey is featured)

FBB Capital Partners | www.fbbcapitalpartners.com

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Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your FBB accounts; and, (3) a description of each comparative benchmark/index is available upon request.