2024 Q1 Economic and Market Commentary

Dear Clients,

We hope that you and your families had an enjoyable holiday season and are having a great start to the New Year! Here at Blue Heron Wealth Partners we are excited about what 2024 has in store for us and are looking forward to continuing to elevate your client experience. Last year was an exciting year for the team – we had an incredible response to the launch of our Tax Service (which is beginning to schedule new and returning clients to file 2023 taxes). We also recently opened a new office location in Apple Valley for tax preparation in a continued effort to work with clients in their communities. Blue Heron Wealth Partners is thriving and growing, and we look forward to another year of serving you and your families.

Around this time last year, we reached out and expressed some cautious optimism about the market and the economy, largely revolving around the inflation question. We hoped to see continued success of the Federal Reserve’s interest rate policy, as well as a positive impact from the major economic policies passed by the Biden administration (American Rescue Plan, Infrastructure Investment and Jobs Act, CHIPS and Science Act, and Inflation Reduction Act). Fortunately, those hopes turned into reality as we saw positive market performance and stronger than expected economic numbers1 .

This year, we are again expressing cautious optimism. Inflation has come down significantly and is edging closer and closer to the Fed’s 2% target. Chairman Powell has signaled that their rate hike cycle has likely ended and there is a possibility of interest rate cuts on the table in 20242 . We are seeing continued economic strength, specifically in the labor market. Finally, it is an election year, and the market can be more volatile due to uncertainty. We will continue to monitor the market and the economy on your behalf, and we appreciate your continued trust in our stewardship.

As always, if you have any questions, we would love to hear from you! Please contact your advisor and they will be happy to schedule a meeting with you.

If you have any questions, please don’t hesitate to reach out to your advisor or call our office at 952-852-1293.

Lori Tauring, and
The Team at Blue Heron Wealth Partners