In the 1940s and early 1950s, computers were the size of buildings and used vacuum tubes - large glass tubes that were fragile and consumed enormous amounts of power, generating significant heat. A former IBM Chairman is thought to have said “I think there is a world market for about five computers.” However, by the mid-1950s, semiconductor chips were invented which were far smaller, more efficient, and performed calculations much faster. This breakthrough led to the information technology revolution that continues today.

Interest rates are fluctuating as investors adjust their expectations around economic growth, Federal Reserve rate moves, and the Trump administration’s policies. The 10-year Treasury yield had risen as high as 4.8% in recent weeks before settling below 4.6%. The 2-year Treasury yield is also elevated, now around 4.2%, and the 30-year mortgage rate remains above 7%.1

President Trump’s inauguration marks a significant political shift amid market and economic uncertainty. The stock market had rallied as much as 5.3% with dividends in the month following the November election, before giving up about half of those gains at the start of the year.1 As President Trump begins his second term, both Wall Street and Main Street are wondering what the next four years may bring.

The stock market has struggled in recent weeks as concerns have grown around interest rates, market valuations, the direction of the economy, and more. Since the market peak on December 6 last year, the S&P 500 has pulled back 4.3% while the 10-year Treasury yield has climbed from 4.15% to 4.76%.

The start of the year is the perfect time to prioritize both personal and financial well-being. While physical health often takes center stage in New Year’s resolutions, financial fitness deserves equal attention. This is especially true after two years of strong market returns and changing economic conditions.