The 19th century author Balzac wrote that “our worst misfortunes never happen, and most miseries lie in anticipation.” This quote perfectly captures 2024, a year of major market, economic, and political concerns for many investors. Worries over a “hard landing” recession, market pullbacks, election turmoil, and more drove market sentiment to extremes.

After a historic year, investors have much to be thankful for this holiday season. Despite periods of uncertainty around the Federal Reserve, the presidential election, and geopolitical conflicts, the stock market has delivered exceptional returns in 2024. With only a few weeks left in the year, the S&P 500 has gained 26.7% with dividends year-to-date, the Dow 19.5%, and the Nasdaq 27.4%. International stocks have also performed well, with emerging markets advancing 9.0% and developed markets 4.8%. Economic growth has exceeded expectations, with inflation returning to pre-pandemic levels, unemployment still low, and GDP growing steadily.

The national debt is quickly approaching $36 trillion, according to the U.S. Treasury, a fact that has fueled concerns among investors and economists. This means that the federal debt has nearly quadrupled since before the 2008 global financial crisis, and has grown every year since 2001. This adds to the recurring fiscal debates over budget deficits, the debt ceiling, government shutdowns, stimulus bills, and more.

While the political world will focus on the election for some time, financial markets have already shifted their attention to the next administration’s policies, Federal Reserve rate cuts, and the underlying economy.

In the remainder of the week following election day, the S&P 500 gained 3.7%, the Dow 4.2%, and the Russell 2000 index of small cap stocks surged 6.1%. Bitcoin also rose above $80,000 for the first time. Even though this sudden jump in markets is positive for portfolios, it’s always important to stay disciplined by maintaining a long-term perspective and focusing on fundamentals.