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Compound Interest

Christopher Liong • March 22, 2024

Small changes now can lead to large impacts in the future. Compound interest is the interest you earn on interest. Small differences in the present rate can lead to big differences in the multiplier effect down the line.

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By Christopher Liong January 13, 2025
“Winners never quit and quitters never win.” – Vince Lombardi Happy New Year to all! We wish everyone a safe, healthy and prosperous year and hope that 2025 has gotten off to a good start as we look forward to what the year has to bring. In honor of Quitter’s Day (the second Friday of January when many people abandon their resolutions for the New Year) and the start of NFL Playoffs, we start with this quote. After a nice bounce post-election in the S&P 500, the market has since settled and is roughly flat since November 5, 2024. This newsletter will have a slightly different format to start the year, as we review the year that was and discuss some things to look out for in 2025. 2024 Year in Review Below are the full year returns of various indices (including dividends) through 12/31/24.
2024 Election
By Christopher Liong November 6, 2024
“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution of the United States of America.” - Preamble to the United States Constitution After months of political rhetoric, back and forth accusations and approximately $16b spent on advertising, the results are finally in, and investors can now refocus on policies and the direction of growth for our country. These words should remind us what OUR great country was built on and that we will always find a way to not only succeed, but thrive. Elections.  With the potential for a Republican sweep, the US Dollar has jumped to a new three-month high, interest rates are up, the price of oil is down and bitcoin surged to a new all-time high of over $75k. Historically, the market has rallied between Election Day and year-end on average...
By Christopher Liong September 25, 2024
As we enter the first days of fall and finally have that first interest rate cut behind us, we always ask ourselves, “What next?” This past week, saw a plethora of analysts provide historical performance post rate cuts, so instead of trying to reinvent the wheel, we will share with you a summary of “The Week In Charts.” We are always reminded of that favorite caveat “past performance is not indicative of future performance,” so we will try our best to provide some perspective to these charts and tables. Interest Rates. So how does the market perform after the first interest rate cuts and what sectors perform best? These charts and tables were published by Canaccord Genuity Capital Markets. This first chart shows that when the initial rate cut occurs, when the S&P 500 Index is near a high, the market tends to do well over the next 12 months, with the exception being the financial crisis in 2007/2008… 
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