Personal Finance: Five Things to be Thankful For

With Thanksgiving rapidly approaching, it’s important to take a time-out from all the negative news that we’re each bombarded with on a daily basis.

Why? Because despite what may be portrayed in the media, there really is a lot to be thankful for. Family…friends…good health. These are generally the first things to come to mind as we sit around the holiday table. And with good reason. Our well-being…and that of those we love is truly what’s most important.

But what else can we add to our list of things to be thankful for this year? Here we’ll take a look at five issues that affect our personal finances. And we’ll offer some reasons why we should be thankful for each.

1. Lower Gas Prices

It wasn’t that long ago that filling up our tanks at the gas station cost many Americans nearly a hundred dollars (or more). That’s because gasoline was selling for well over $4 per gallon throughout New York, and in many other areas of the country as well. Today, the national average cost per gallon sits at $3.13, almost 35% below the peak in 2022. Despite the typical price increases that accompany the summer travel season, gasoline prices have been falling steadily for the past two years.

2. A Resilient Economy

Since late in 2022, many experts have continued to cite the inverted yield curve (higher short-term interest rates than long-term rates), a softening labor market and slowing economic growth as harbingers of a looming recession. However, despite these issues, the U.S. economy has remained remarkably resilient, and one of the most highly forecasted recessions just hasn’t materialized…yet anyway.

While not stellar, GDP growth is currently running at an annualized rate of around 2.8% (compared to the 3.16% average rate since 1948).

3. Strong Job Market

While the national unemployment rate has crept up a little in recent months to 4.1%, it remains very low by historic standards. And with more than 8 million current openings, jobs remain plentiful for those that want to work.

4. Lower Inflation 

Over the past few years, Americans have been heavily impacted by increasingly higher prices of the goods and services they purchase. At its peak in June of 2022, inflation was running at an annualized rate of more than 9%. Since that time, it’s seen a steady decline. While not yet at the Fed’s targeted rate of 2.0%, inflation as of September 30th had fallen to 2.4%, its lowest point since March of 2021.

5. Strong Equity Markets

By any measure, 2024 has been a very good year for the markets. Throughout the first ten months of the year, the S&P 500 is up almost 20%. And, looking back to this time one year ago, we can see that stocks, as measured by the S&P 500, have increased more than 35%. Of course, most investors aren’t invested entirely in stocks, so their returns likely would not be that high. However, most well-diversified portfolios have enjoyed solid growth so far this year.

If you have any questions about how these issues may impact your personal financial situation, please reach out to your planner to discuss.

From all of us at S.E.E.D. Planning Group,

we would like to extend our wishes for a very Happy Thanksgiving!