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Weekly Economic Update: January 1, 2024

S&P Ends 2023 Up 

Stocks posted a slight gain last week amid a shortage of news and light holiday trading.

The Dow Jones Industrial Average gained 0.76%, while the Standard & Poor’s 500 added 0.49%. The Nasdaq Composite index advanced 0.32% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, increased 1.13%.

Stocks Gain To End Year
The stock market gains in the final trading days of 2023 capped an exceptional year of performance. The last-week rally also mirrored the historical tendency of stocks to rise at this time of year, a propensity known as the “Santa Claus rally.” The Santa Claus rally covers the final five trading days of the calendar year and the first two days of trading in January. 

The average return of the S&P 500 during this Santa Claus rally is 1.3% during the past 73 years. Remember that past performance does not guarantee future results, and individuals cannot invest directly in an index.

What's Your Financial Resolution for the New Year? 

If you're planning to save more money or reduce expenses, you are not alone; both top the list of New Year’s resolutions for 2024. In a recent survey, nearly 60% of respondents said they would like to have a larger nest egg in their bank accounts, overtaking the trend of losing weight and exercising more.

Other common money goals include building an emergency fund, creating an estate plan, contributing more to retirement, making portfolio adjustments to reflect a more socially conscious investments, and boosting financial literacy. 

If you have  any of these resolutions, or just a desire to take more control over your financial journey, we are always here to help you set and achieve your short-term and long-range goals.  We find that people who feel empowered in their financial lives experience more joy, peace, satisfaction, and pride concerning their finances. 💪🚀

How much will you get back in TABOR refunds?

 The state auditor's office has confirmed Colorado collected more revenue in the most recent fiscal year than the Taxpayer's Bill of Rights allows, meaning taxpayers will get several hundred dollars in refunds.

The office confirmed that Colorado collected $3.6 billion more than TABOR allows during fiscal year 2023. Due to legislation passed in a special session after the failure of Proposition HH in November, each taxpayer will receive the same amount, no matter how much money they make. Taxpayers will get $800 each, or $1,600 for couples filing jointly. 

More info via the Colorado Department of Revenue.

Parting Shot: Happy New Year!

Since 1922 The AdAmAn Club has climbed Pikes Peak on December 30 and 31st. At the stroke of midnight on New Year's Eve they ignite a glorious fireworks display from the summit to usher in the New Year. This photo features Todd and Priscilla Clayton and other club members on their way up the mountain.  Learn more at adaman.org. Photo at top by Jacob Caddy; photo below via The AdAmAn Club Facebook page.

Capstone built our reputation on friendly service, impeccable honesty, and respect for every client. Our clients’ needs drive our relationship, and the focus is always on you. We strive to be highly responsive to your requests and are skilled at creating solutions customized to your goals, values, and situation.  Reach out anytime with questions. We're happy to help!

Capstone Investment Financial Group, LLC

Colorado Springs/Denver

719-477-9883

info@capstoneinvest.com