#52 – What investors need to watch out for in 2025

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On today’s episode of Money Matters, Wes dives into the top ten trends that he anticipates will define 2025 for investors, starting with resilience in the markets and economy, the dominance of the consumer, and a surge in productivity fueled by emerging technologies like AI.  Producer and co-host Jeff Lloyd analyzes what these trends mean for investors, covering everything from the bull market’s potential, dividend contributions, and tariff impacts to Washington’s influence on market stability.

Read The Full Transcript From This Episode

(click below to expand and read the full interview)

  • Wes Moss [00:00:01]:
    The Q ratio, average convergence, divergence, basis points and BS Financial shows. Love to sound smart, but on Money Matters we want to make you smart. That’s why the goal is to keep you informed and empowered. Our focus, providing clear, actionable information without the financial jargon to help 1 million families retire sooner and happier. Based on the long running WSB radio show, this Money Matters podcast is tailor made for both modern retirees and those still in the planning stages. Join us in this exciting new chapter and let’s journey toward a financially secure and joyful retirement together. Wes Moss here in studio with the great Jeff Lloyd joining us. Thank you for bringing the munchkins, by the way.

    Wes Moss [00:00:54]:
    I love those. You’re welcome.

    Jeff Lloyd [00:00:54]:
    Who don’t like some Dunkin Donuts?

    Wes Moss [00:00:57]:
    The munchkins. It’s great for my new holiday being more, you know, decent food. It is so nice though after the holidays, first couple of weeks of the year, it’s so at least for me, it’s really easy to eat much better and then that kind of wears off. It’s almost like I’m craving. You think about over the holidays, my mother in law, we were up in Michigan for a little while. There’s always a cheese plate and there’s a charcuterie plate and there’s always all. And that’s. And then I get full and then we have dinner and then we have dessert.

    Wes Moss [00:01:31]:
    So it’s just this, it’s just this pile on of food which is great. And then I, by the time January rolls around, I kind of get ready to my body almost craves not eating like an absolute slob.

    Jeff Lloyd [00:01:44]:
    It’s basically since then that wears off.

    Wes Moss [00:01:46]:
    And I’m like okay, give me the, give me the checks mix.

    Jeff Lloyd [00:01:50]:
    During the holidays you’re just eating non stop and it starts Thanksgiving. It goes through December, it goes through the new year and now it’s time. You know, we were talking a little bit this past week about New Year’s resolutions. It’s really not one of my resolutions, but just eat a little bit better and healthier throughout the year. Well, I’ll call it a goal for this.

    Wes Moss [00:02:09]:
    Great to have specific goals. Eat a little bit better.

    Jeff Lloyd [00:02:12]:
    But I’m sorry for the munchkins, the little donut holes that I brought the.

    Wes Moss [00:02:15]:
    So okay, so speaking of, I want to go. We need to talk about the outlook for the year. Year. We’re almost halfway through the month already. I think it’s time to really. We published our outlook for 2025 and it’s a long outlook. It’s. I don’t know, 12, 13, 14 pages and there’s lots of great charts in it and great visuals.

    Wes Moss [00:02:36]:
    So we can’t obviously bring the table, bring to the table on radio, but we’re going to walk through those. And I look at it as almost 10, 11. I really have a lot. If I had to break down our core themes for 2025, really there are five big ones. I think for radio, it’s maybe easier to kind of walk through 10. I think there’s 10 things that here’s the way I look at it is what do investors need to watch out for in 2025? What’s happening as we, as we get this year kicked off? It’s already kicked off. Market was closed this Thursday for President Carter’s funeral and the observance of that. But the stock market was closed.

    Wes Moss [00:03:14]:
    The bond market was open Thursday. But we’re in it. We’re in it. And I think that these themes, they’re very important to understand as we move forward. So maybe let’s start with that. Let me give you a quick rundown and then we’ll go into each one of these. So one is about resilience. Resilience is the name of the game.

    Wes Moss [00:03:32]:
    2024, I think it carries through to 2025 to the consumer is king, at least in the United States. Number three, productivity. These are my favorite economic numbers. Now the when they’re going in the right direction. I love seeing these numbers move and they’re so important to the US Economy and just moving forward. The army of American productivity makes everyone march a little faster, a little better, more efficiently when productivity is in a better spot. Four, we’ve got some unlikely allies and that’s the stock market and Washington in 2025. Five, tariffs.

    Wes Moss [00:04:12]:
    Tariffs are on the horizon. What is that going to mean for the markets, the economy, inflation? Number six, volatility has been sleeping. Where does volatility go in 2025? Number seven, the bull, the bull market. The bull market isn’t that old. I want to go through some statistics around bull markets, do some bear market statistics. Well, correction statistics. Number eight, let’s take another look at dividend contribution. So stocks that pay dividends or cash flow, what does that look like over the last couple of years? Call it decade.

    Wes Moss [00:04:50]:
    What could it look like in 2025? 9 bonds off the bench. I think, I can’t remember. At some point I wrote bonds are back. The way I look at it, this year for 2025, bonds are off the bench. Number 10, this probably should be number one. But we’re kind of saving it for number 10 earnings. They are the engine that we it’s always the most important thing for markets, but the earnings engine, at least for now, the outlook is that that engine is accelerating and that’s a very big deal. And then bonus, I have another 11, number 11 here, income investing, waiting or getting paid while you wait.

    Wes Moss [00:05:32]:
    That’s our rundown for 2025 and we’re going to go into some perspective about each one of these. Jeff Lloyd, you brought up before we talk about 2024. Well, we’ll start with this. Resilience was the name of the game last year. I think it’s the name of the game this year in 2025. So we think about all the bad things that we knew we were facing last year and then we faced throughout the year. JEFF lloyd, Inflation, recession fears, political chaos. US Economy did fine, actually did really well despite all of that.

    Wes Moss [00:06:02]:
    We talked about a recession all year last year. Talked about inflation all year last year.

    Jeff Lloyd [00:06:08]:
    Yeah. Remember at the beginning of 2024 there were talks of could there be a recession this year? And then we talked a little bit a couple weeks ago about earnings expectations and S and p forecast for 2024 about the big Wall street banks. If you averaged what their s and.

    Wes Moss [00:06:29]:
    P500 price target was beginning of last.

    Jeff Lloyd [00:06:31]:
    Year saying, they were basically saying on average, we think the s and P500 is going to be up 2%. And the highest price target for the s and P500 we actually hit in March.

    Wes Moss [00:06:47]:
    Okay, I’m looking for this chart that you brought in. So as we started last year, the s and P 500 was around 4800, the target on Wall Street. So the 12 call it big research firms on Wall street was 84867.

    Jeff Lloyd [00:07:06]:
    Yeah. So just about 2% higher than the starting level.

    Wes Moss [00:07:10]:
    Where did we finish at example, Morgan Stanley had the S and P ending last year at 4,500. Candor Fitzgerald 4,400. J.P. morgan 4,200. The Fund Strat was the was the biggest bull in the room at 5200. And we and to your point, we hit 5200 in just in March. And then we finished the year at what, right around 5882, 58, 82. And this is the index of the s and P500.

    Wes Moss [00:07:40]:
    So so we ended up with Wall street was calling for a 2% gain and we ended with essentially a 25% gain for the S&P500.500. Now you could take all of these are I Think this is a great example. You have the brightest minds in the world. You’ve got the biggest financial institutions with endless dollars, research teams of hundreds and hundreds of people, and they’re all from Harvard, mit, et cetera, et cetera. And they couldn’t have been more wrong. Even though this year the outlooks are pretty favorable. This year, Wells Fargo’s, their target for The S&P 500 is a little over 7,000, Yardeni’s at 7,000, Deutsche bank at 7, BMO Capital or BMO Capital at 6,700, et cetera, et cetera. You average it all together collectively, Wall Street’s looking for about a 10% gain.

    Wes Moss [00:08:28]:
    They could be totally off. Again, take all of these with a grain of salt. I am not optimistic about 2025. In fact, I’m pretty optimistic, particularly about the economy. Remember, the stock market and the economy don’t always hold hands lockstep. If earnings are good and the economy’s good and the market’s not all that good, I’m still fine with it because eventually the markets will catch up. And that’s what we’ll focus on a little bit here. Today is 2025.

    Wes Moss [00:08:56]:
    But I think to your point is that strategist said market wasn’t going to do well. Talk of recession, worry about inflation and oh, what about the election? And then an absolutely unprecedented. It’s not often you can say completely unprecedented. We never had the combination that we saw where a president incumbent dropped out a couple months before the race, then running against someone who used to be president, who hasn’t been president. The whole thing was completely new, new, new. And it made us worried and nervous. Yet markets did well. And that is the mark of what I would call resilience.

    Jeff Lloyd [00:09:30]:
    And also throw in a assassination attempt. There was just a lot to assassinate. Two assassination attempts.

    Wes Moss [00:09:36]:
    Can we say that again? Assassination attempts, attempts.

    Jeff Lloyd [00:09:39]:
    There was just a lot of political turmoil. Yet we said at the beginning of the year. Normally during a reelection year, which last year was still a reelection year, even though the sitting president didn’t run for reelection, it was at the beginning of the year. Historically, those years have done well.

    Wes Moss [00:09:56]:
    And it did. And that happened. Remember Federal Reserve higher for longer rates were high. They started lowering rates in 2024, but not dramatically. So you’ve got all these headwinds. Yet GDP for 2024 grew at almost 3%. That’s a big number for an economy that is this mature, this size to grow at 3%. I mean, that’s like the tortoise.

    Wes Moss [00:10:22]:
    It’s like Sonic the Hedgehog mixed with tortoise. It’s moving pretty fast. So the point of saying that and kind of giving a recap, think of all the things that were thrown at the US economy in the market last year. Sure, we could have a whole list that’s just as potentially perilous as we had in 2024. And we may, we may could easily come up with just as many things that are known headwinds. Yet markets were resilient. The economy is resilient. Number two, we’re going to get to in a second.

    Wes Moss [00:10:52]:
    The consumer’s resilient. And I see that carrying through for 2025. So that’s number one on our list is resilience last year. We see continued resilience this year. Number two, the consumer is king. I think the consumer still is king. The consumer has been king. The consumer will probably stay king long after where we are in 2025.

    Wes Moss [00:11:16]:
    But we hear this statistic a lot. I think it’s worth reminding and acknowledging nearly 70% of the US economy powered by the consumer. 70%. So it’s no surprise then when you get high employment, not unemployment, and steady disposable income, things keep humming. And something in our outlook letter I thought was a very smart question asked by Connor Miller, our cio. Number one, do the vast majority of those who want a job have a job? Question mark. Are those employed seeing their paychecks grow beyond inflation? Question mark. And the only reason I think my brain goes to question mark is I do so much Siri to text when I’m using my phone, I have to remember to say question mark.

    Jeff Lloyd [00:12:07]:
    And the answer to both those questions.

    Wes Moss [00:12:10]:
    Is yes, it is.

    Jeff Lloyd [00:12:12]:
    We’re seeing that for both those questions.

    Wes Moss [00:12:14]:
    We have a record 160 million people approximately employed in the United States, Americans. Here’s the other thing. Americans are only saving about 4% of their income. That means they’re spending 96% of it. So when you get an economy of 160 people, million people working, they’re earning money, their wages are growing faster than inflation, they’re only saving 4%. What are they doing with the rest of the 96%? They’re spending it. They did it last year, they’re going to do it, probably continue to do that in 2025. The resilient consumer, who is king.

    Wes Moss [00:12:47]:
    Hey, can we do a little recap? I want to know about this. I think our listeners want to know about the sectors. What happened in 2024 with yes, S&P 500 up with total return right around 25. But we had some pretty big diversions between sectors. The 11 sectors of the S&P 500.

    Jeff Lloyd [00:13:06]:
    Yeah. So if you look at the S&P 500, like you said, it was up 25% from a total return perspective for the full year, 2024. Underneath the hood, if you look at all the different sectors, every sector in The S&P 500 was up last year.

    Wes Moss [00:13:25]:
    We’re not down.

    Jeff Lloyd [00:13:26]:
    Not down. Led by communication services, up over 40%. At the bottom was materials, just slightly, slightly up less than. It was less than 1. Less than 1.

    Wes Moss [00:13:39]:
    I thought it was perfectly flat. That’s why I said not down. So materials were flat.

    Jeff Lloyd [00:13:44]:
    Discretionary. Up. Communication services, up. Financials, up about 30%. Technology up in the mid-30s, up over 36%. Industrials, energy, staples, utilities. Utilities up just over 23%. And then you got real estate and health care rounding it out.

    Jeff Lloyd [00:14:03]:
    Real estate up just over 5%. And then. And then health care, which kind of took a little bit of a hit the fourth quarter.

    Wes Moss [00:14:11]:
    Yeah. Right after the election.

    Jeff Lloyd [00:14:12]:
    Right after the election, still ended up the year just under. Up under 3%.

    Wes Moss [00:14:17]:
    You know, as we go through what to watch out for, what investors should be watching out for in 2025, we talked about resilience of the. Of the markets, the economy. We talked about, number two, the consumer is king. Number three, the productivity is on the rise. But four, I’ll skip to for just a second here because you brought up politics at at least a little bit. Washington and markets, I think they are unlikely allies this year. If you think about what we faced last year, all this political uncertainty, and we’ve said, hey, look, the political combination doesn’t matter. We put this in our 2025 outlook and the combination we have today, which is starting soon, Republican in the White House, Republican Senate, Republican Congress, that combination is still pretty darn good over the course of history, up 12.9% on average.

    Wes Moss [00:15:07]:
    However, we just made a comment that said, well, healthcare was down post the election. So it’s not as though politics doesn’t influence markets. We know it does, particularly in the short term. And you can really see it within sectors. And you get a new administration and they’re gonna be tough on healthcare. It may lower drug prices. So what happens when market runs from healthcare companies? And that happens for a period of time. So it’s not as though politics doesn’t influence.

    Wes Moss [00:15:33]:
    It’s just broadly, we feel as though the political combination, overall, it can’t stop the marching forward of earnings of the broad S&P 500 the army of American productivity just marches right through. More Money matters straight ahead. If you’ve ever done a Jane Fonda workout or if you remember as a kid, Rocky running the steps, and if Michael keaton is still Mr. Mom to you, then guess what? It’s officially time to do some retirement planning. It’s Wes Moss from Money Matters. Weren’t those the good old days? Well, with a little bit of retirement planning, there are plenty of good days ahead. Schedule an appointment with our team today@yourwealth.com that’s y o u r your wealth.com one of the things that I think I’ve heard all throughout this new year and actually in December, almost to a letter, every single pundit that I’ve and you, there’s 30, 40, 50 people a day on CNBC. And if you’re somebody like, if you’re like me, it’s on all the time.

    Wes Moss [00:16:38]:
    So you’re constantly hearing this. And the one thing you hear is that 2023 was a good year, up over 20%. 2024 was a good year, up 25%. There’s no way we can have a good year in 2025. Just two. You just can’t do it. So you go and you look over the course of economic history, there are lots of stretches where you’ve had green, green, green, green, green, green, green, meaning up, up, up. 2009 was up 2010 was up 2011, 12, 13, 14, 15, 16, 17.

    Wes Moss [00:17:09]:
    And some of these years were up. 2013 was up 32% for the S&P 500. 2016 was up 12. Then 2017 was up 21. 2019 was up 31. 2020 was up at 19. 2021 was up 28. So there are the market runs in long stretches.

    Wes Moss [00:17:27]:
    In fact, we have a statistic about that we should probably skip to on our list, Jeff Lloyd, of what investors should be watching out for in 2025. I think we need to skip to number seven. Tell us about number seven.

    Jeff Lloyd [00:17:45]:
    The bull, the bull market isn’t that old. And we’re, we’re sitting at about 26 months into this bull market. And kind of by historical standards, it’s still pretty young. Over the past 50 years, bull markets have ranged in length from, you know, as short as two years to as long as 11. But the average run of those bull markets is about five years. So like I said, we’re about 26 months on average. The bull market runs five years. So we believe we could be in the early stages of another bull market.

    Wes Moss [00:18:24]:
    Or at least Middle innings could be middle innings. And I think the other way to look at this is that the way I think of it is just because the market has done well doesn’t mean it can’t continue to do well. One of our big themes from last year, this is, I think, your chart of the year, which was, as you will say, at all time high, all.

    Jeff Lloyd [00:18:45]:
    Time High, S&P 500, all time highs. But yes, that’s, that’s one thing that we talked a lot about last year.

    Wes Moss [00:18:51]:
    How many did we finish with? 2024.

    Jeff Lloyd [00:18:54]:
    In 2024, the S&P 500 finished with 57 new all time highs. That’s the fifth most of any year in history.

    Wes Moss [00:19:04]:
    And remember the statistic around that. Or I think the, if you’re looking at economic history, when markets do well, you think, wow, the market’s already done well. This is the time to pause. Maybe you take my gains, I sell at a high, not buy at a high. Yet over the course of economic history, once we’re hitting all time highs, they tend to be very durable and they continue. And the reason for that, as we talked about a lot last year, is that it takes a lot. A lot of things have to go well economically, market wise, earnings wise, company wise, sector wise, productivity wise, in order for us to get to an all time high. So typically there’s some momentum in that flywheel.

    Wes Moss [00:19:43]:
    But we just did number seven. So the bull isn’t that old. If you look over the course of history. Number one was resilience the name of the game. We continue to see resilience for the economy, markets, consumer in 2025, number two, consumers king consumers only saving about 4% and wages are growing faster than inflation. So when you have 160 some million people working, have a job, want a job, have a job, we know they want to spend because they’re not we as a population, as an economy, not saving a ton, we’re outspending it, whether it’s on goods or services or housing. But that bodes well. And I think the consumer stays strong and I think the consumer’s used to these higher interest rates you brought up during the break.

    Wes Moss [00:20:28]:
    We finished at 30 year mortgage rates, still almost at 7%. And that was for most of last year. We didn’t really get a break. Ironically, the Fed started cutting rates and mortgage rates went up. They kind of went down in, in, in previewing, knowing the Fed was probably going to start lowering rates. But that really hasn’t helped the mortgage market. So we’ll see where we head. There now, productivity.

    Wes Moss [00:20:51]:
    Jeff Lloyd My, one of my. And this is tough to measure. I guess you can just do it blanketly. Measure output divided by hours worked and you get productivity.

    Jeff Lloyd [00:21:01]:
    I’m, I’m smiling over here. You, you can’t see that, but I’m smiling because Wes, I gotta think this is one of your favorite topics for 2025 and something that you have talked about continuously. The army of American productivity.

    Wes Moss [00:21:16]:
    You know, I wish you could see this graphic that shows just to the trajectory. Imagine we. First of all, we, we. Productivity has been growing at a pretty anemic rate. If you look at, call it 2001, 2002, 3. It’s only recently in the last, call it around the last two years that we’ve seen productivity go from that right around 1% productivity growth. We’re not talking about GDP, we’re talking about the rise in the output relative to hours worked, which again, think about how massive that is to figure that statistic out in the United States. But we can measure it.

    Wes Moss [00:21:54]:
    We do measure it. Bureau of Labor Statistics does so. And what we see now for the past two years, productivity has more than doubled. The rate of productivity increases more than double. We’ve gone from around 1 to slightly over 2%. Doesn’t sound like a lot, but play that out. Over 10 years, growing at 1% or 1.1% over 10 years, we’re growing productivity 12%. Okay, okay, not bad.

    Wes Moss [00:22:20]:
    Growing it at 2, 2 and a 2 and change. Now in 10 years, we’re up 35% in productivity. So the fact that we’re able to measure that is, I think it has dramatic implications. And think about how much more productive we got starting in the 90s, which was the first, the Internet boom.

    Jeff Lloyd [00:22:41]:
    Right.

    Wes Moss [00:22:41]:
    Just the productivity that that brought over many years we got more productive, faster at our jobs, more efficient. And that boom lasted, that productivity surge lasted for a very long time. And then we kind of got used to everybody. It wasn’t new again. It didn’t continue to move the meter. We got diminishing marginal productivity growth at some point. Well, we’ve got a new version of that and that’s called artificial intelligence. And you can look at it all day and say, well, are we really going to get.

    Wes Moss [00:23:10]:
    Is it really going to make the economy better? I don’t know. We talked about this two years ago and productivity started to rise and it still continued to be well beyond the rate that we saw for almost a decade, doubling. What’s the common denominator? It’s artificial intelligence and it’s the implementation of the efficiency that we are getting of AI, faster technology, faster semiconductors. There was a landmark announcement last year that Google has been working on. I guess it’s supercomputing, mega computing. And even though I think it was this week, Jensen Huang from Nvidia was saying that that’s still going to take 10 years, 15 years to really manifest. But the thought around taking artificial intelligence and quantum computing, putting them together, quantum is what I was looking for. Those are very real steps up when it comes to efficiency, scale, logistics, getting things to where they need to be 10% quicker.

    Wes Moss [00:24:13]:
    And you do that over the course of a $25 trillion economy. It’s massive. Number four, Washington and markets unlikely allies. I think this one’s pretty simple, Jeff Lloyd, is that if you look back over the course of political history, we know the best year out of the four year cycle. So you’ve got four years, you’ve got the election year, you’ve got, which we just went through post midterm, midterm year and post midterm, midterm and then post election year, we’re in the post election year. And out of the four, it’s the second best historically. The year that we’re in right now, 2025 is the second best over the course of that four year economic history.

    Jeff Lloyd [00:24:56]:
    Yeah. And over the last 50 years for markets. For markets over the last 50 years, the S&P 500 has delivered on average about an 11% return during the inaugural year of a presidency.

    Wes Moss [00:25:11]:
    That’s where we pretty good. So history on our side there. And part of it is this just why reduced political uncertainty, it’s dramatically reduced today, where we were six months ago, relative today. But in every election cycle we kind of forget. Every time we go through a new election there’s a huge amount of uncertainty. What if the incumbent wins? What if the incumbent loses? We just went through that and now we know, okay, we know that the incumbent lost, we have a new party in town, but we know more, at least what we’re getting today than we did before the election. And that I think that eases the great uncertainty that holds markets back. And that’s why, at least historically, that’s I think, a big reason why we’ve seen this be a pretty good year in the cycle for the market.

    Wes Moss [00:25:58]:
    Number five, part of the uncertainty. And this one’s about tariffs. Number five, tariffs on the horizon. When you hear tariffs, I immediately think, I think, we all think inflation, right? How do you have a 20, you impose 20% tariff on anything coming to the country from another country, well, it’s 20% more expensive overnight. How does that not cause inflation? Then somebody’s got paid for it. Well, that doesn’t mean you automatically now have to pay 20% more for a product because some of that cost and a lot of that cost can be borne by the company that’s exporting it. Now, it’s not great for the company because they’re now eating a 20% or maybe they take part of it, they take 15 of the 20%. So their profits go down.

    Wes Moss [00:26:43]:
    But that’s profits in another country. That’s another company in another country. So to stay competitive, the company may say, look, we’re going to eat some of this cost. We’re going to reduce our price so that when the tariff go, when it’s marked up, when it gets to the United States, it’s not all that bad or that different for the consumer. So tariffs should be inflationary, and they clearly are, but they may not be as terrible as people have been thinking. That’s number one. Number two, I think the versus we think of this and this happens in an election cycle, oh, they’re gonna be tariffs everywhere, every country, Europe, Asia, all over the world. But really we’re gonna probably see a much more targeted approach where, yes, we’re gonna see tariffs probably from China, but we may not see any tariffs imposed on Mexico, we may not see any tariff increases from Europe.

    Wes Moss [00:27:33]:
    So we just have to understand that the bark of all these tariffs may not be nearly as bad as the full bite of these tariffs, which means that inflation might not be as bad as feared. And I think that’s a key theme for 2025. Six, we got to seven. The bull market isn’t that old. Average bull markets will last about five years. We’re only two and a half years or two years in volatility. I think it’s just important to know where. I would agree with what I could certainly see for 2025 last year and really the year before.

    Wes Moss [00:28:09]:
    Historically unvolatile, the biggest drawdown we had last year was 8.5%. The average stock market year we see down 16, 17% as a normal garden variety pullback. In any given year, we saw half that. It’s hard not to think we’re not going to see increased volatility in 2025. So I think just investors, I think, should be prepared for that. And then if you look at the frequency of pullbacks over the last 50 years, the markets experienced 2.5percent pullbacks annually or on average a 10% correction every call it more than every two years and then 15% decline about once every four, four years with the average being down 16.4 in any given year from any high starting point. So that’s, I think we need to look for volatility to come back in 2025.

    Jeff Lloyd [00:29:07]:
    Yeah. And we’re not saying that the sky is falling or the sky is going to fall. We’re just kind of saying from a historical perspective, like you said last year, the biggest pullback we saw was eight and a half percent. And the year before that, in 2023, the biggest pullback we saw was 10%. And historically speaking, at least from last year’s perspective, it’s normally double that in that 16 to 17% range.

    Wes Moss [00:29:30]:
    And that’s what makes investing so tough, is that nobody likes to see the value of their money go down. Nobody wants to put money to work thinking, oh wait, we’re going to go down 10%. Why don’t just wait till we’re down 10%, then we’ll put money in. That’s what makes investing so tough. So maybe I’ll combine because we’re wrapping up here today. Eight and number 11 and number eight on our list. Look at dividend contribution because it’s been historically low over the last decade. And then it really speaks to dividend or income investing, which is a way of investing where you can get paid while you wait out all that volatility.

    Wes Moss [00:30:08]:
    If you look at over the past decade, dividends, so that’s the cash flow we get from stocks and we like to reinvest it or just spend it in retirement. Only accounted for about 12% of the total return. Historically, dividends are about 40% of total returns. Total return is just growth plus dividends. Put them together, that’s your total return. So if we see any sort of reversion to the mean, then what we would see is more or a higher percentage that we’re getting from dividend contribution. That could be a theme to watch out for in 2025. And with that, we kind of wrap it up.

    Wes Moss [00:30:41]:
    Just not enough time here. Jeff Floyd, thank you for being in the studio. Thank you for bringing the munchkins. See you next week. With that, you can find our team. Meet Jeff lloyd@your wealth.com that’s y o u r wealth.com have a wonderful rest of your day.

    Speaker C [00:31:02]:
    This is provided as a resource for informational purposes and is not to be viewed as investment advice or recommendations. This information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. The mention of any company is provided to you for informational purposes and as an example only, and is not to be considered investment advice or recommendation or an endorsement of any particular company. Past performance is not indicative of future results. Investing involves risk, including possible loss of principal. There is no guarantee offered that investment, return, yield, or performance will be achieved. The information provided is strictly an opinion and for informational purposes only, and it is not known whether the strategies will be successful. There are many aspects and criteria that must be examined and considered before investing.

    Speaker C [00:31:50]:
    This information is not intended to and should not form a primary basis for any investment decision that you may make. Always consult your own legal tax or investment advisor before making any investment, tax, estate or financial planning considerations or decisions. Investment decisions should not be made solely based on information contained herein.

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This information is provided to you as a resource for educational purposes and as an example only and is not to be considered investment advice or recommendation or an endorsement of any particular security.  Investing involves risk, including the possible loss of principal. There is no guarantee offered that investment return, yield, or performance will be achieved.  There will be periods of performance fluctuations, including periods of negative returns and periods where dividends will not be paid.  Past performance is not indicative of future results when considering any investment vehicle. The mention of any specific security should not be inferred as having been successful or responsible for any investor achieving their investment goals.  Additionally, the mention of any specific security is not to infer investment success of the security or of any portfolio.  A reader may request a list of all recommendations made by Capital Investment Advisors within the immediately preceding period of one year upon written request to Capital Investment Advisors.  It is not known whether any investor holding the mentioned securities have achieved their investment goals or experienced appreciation of their portfolio.  This information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. This information is not intended to, and should not, form a primary basis for any investment decision that you may make. Always consult your own legal, tax, or investment advisor before making any investment/tax/estate/financial planning considerations or decisions.

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