Anyone past a certain age knows how much easier it was to do things when they were younger. You could stay up all night to finish a project, play a pickup basketball game without stretching, and eat or drink whatever you wanted without many consequences. As we get older, though, we start to see the effects of our poor decisions but also gain the experience that can help guide us.

September was a solid month for investors, capping off a strong quarter for markets. Falling interest rates helped support stock returns, with the S&P 500 and Dow Jones Industrial Average setting new record highs during the month. Even bonds were up, marking five straight months with positive fixed income performance.

“Sometimes the questions are complicated, and the answers are simple.”
— Dr. Seuss

The Federal Open Market Committee (FOMC) met this week and voted to cut rates by a half-percent, bringing its policy range to 4.75 percent to 5 percent. This decision comes after committee members had elected to hold rates steady at the preceding eight meetings after their hiking cycle concluded in July 2023. This vote also marks the first time in recent periods that a voting committee member dissented from the popular vote. We saw 11 committee members vote in favor of the action, with Fed Governor Michelle Bowman as the sole dissenter, preferring a quarter-percent cut.

If you entered this NFL season as a Kansas City Chiefs fan, you’re probably hoping for a Super Bowl win after clinching three of the past five Super Bowls and having Patrick Mahomes as your quarterback and Taylor Swift backing the team. (As a Patriots fan, I remember that feeling.) Similarly, after the S&P 500 beat earnings estimates for several quarters, investors aren’t just hoping to beat earnings. They are looking for both a beat and better guidance going forward. Investors had to settle for just one of those in the second quarter.

August was an encouraging month for stocks, as markets were able to end the month in positive territory despite an early-month sell-off. The Dow Jones Industrial Average ended the month at a record high, while the S&P 500 was close to its own record level. The Nasdaq Composite lagged its peers, but the technology-heavy index still managed to eke out a modest gain during the month.

“Do you believe in miracles? Yes!”

July was a mixed month for markets, as investors rotated away from larger technology companies and took a more diversified approach during the month. The S&P 500 and Dow Jones Industrial Average both posted positive returns in July, but the Nasdaq Composite declined modestly. International markets were up for the month, while falling interest rates led to positive returns for bonds.

It has been quite a couple of days in the financial markets. Today marks the latest in a sharp drawdown around the world. Japan has been hit particularly hard, but the pullback is global. Here in the U.S., for example, the S&P 500 is down about 3 percent for the day (as of this writing) and just shy of 8 percent off its all-time highs. The Nasdaq is doing even worse, down almost 4 percent for the day and 14 percent off its all-time highs.

The Federal Open Market Committee (FOMC) met this week and voted unanimously to hold rates steady for the eighth consecutive meeting, leaving its policy range at 5.25 percent to 5.5 percent. This decision came as no surprise, with the futures markets pricing in a near-zero percent chance of a rate cut leading up to the meeting.