As we close in on the end of another year, we find ourselves wondering where the time goes. We’ve spent countless hours reviewing what unfolded in 2024 while weighing the projections for 2025. Naturally, just as few predicted the remarkable market performance we’ve seen this year (see the chart below), it’s just as likely that the forecasts for 2025 will prove equally off the mark (see the second chart).
With that in mind, this week’s update won’t linger on the numerical highlights of 2024, as impressive as they may be from a historical perspective. Instead, I’d like to take a step back and consider a more philosophical point raised in one of my recent readings: the value of time versus the value of money. Specifically, the piece was a great reminder that time is far more precious than money.
It’s often the case that as we grow older, we come to appreciate this truth more deeply. Yet, how often do we actually pause to consider it? That’s why the following quote resonated so powerfully when I read it:
“Time is the only currency you spend without knowing your balance. Use it wisely.”
Many of us lead busy lives—juggling work, family, and countless other responsibilities. We focus intently on our day-to-day routines, tasks, and goals. Yet, in doing so, we sometimes overlook this fundamental truth about time’s irreplaceable nature.
So, how does this relate to investing and financial planning? The connection is straightforward if you think about it. The purpose of saving, investing, and planning isn’t merely to build the largest portfolio possible. If that were the only objective, we’d sacrifice countless comforts and meaningful experiences along the way, living a life of constant deprivation for the sake of accumulating wealth. But we know that money, in and of itself, doesn’t buy happiness.
What money can buy, when managed thoughtfully, is freedom. By saving, investing, and planning well, you can gain the freedom to spend your time as you choose—on the people, pursuits, and passions that make life rewarding. Achieving financial stability isn’t about hoarding wealth; it’s about unlocking the ability to use your time in ways that truly enrich your life.
So, if you’ve reached a point of financial freedom, don’t let it go to waste—embrace it. Take that trip, spend time with loved ones, or develop that hobby you’ve always postponed. If you’re still working toward that goal, remember that sticking to a well-thought-out plan while consistently saving will eventually get you there, allowing you to experience the same freedom one day. After all, while it’s easy to track how your portfolio has grown over the past few years, none of us can ever see how much sand is left in our hourglass.
Ultimately, how you use that wealth of time matters most—that’s where true happiness lies.
Markets / Economy
- The S&P was down -0.6%, the Nasdaq was up 0.3%, and the small-cap Russell 2000 was down 2.6%.
- Core CPI rose by 0.3% from last month, the same pace as October and in line with market expectations.
- CPI increased 0.3% MoM, the most since April, above October’s 0.2% increase, but in line with market expectations.
- Producer prices rose 0.4% MoM, higher than an upwardly revised 0.3% in October and twice the market forecast of 0.2%. It is the biggest monthly gain in five months.
- Initial jobless claims soared by 17K from the previous week to 242K in the first week of December, well above market expectations of 220K to mark the highest count of new claims since October.
- Outstanding claims rose by 15K from the previous week to 1.886M, close to the three-year high.
Stocks
- U.S. equities were in negative territory. Materials and Utilities led the decline, while Consumer Discretionary and Communication Services outperformed. Growth stocks led value stocks, and large caps beat small caps.
- International equities closed lower for the week. Emerging markets fared better than developed markets.
Bonds
- The 10-year Treasury bond yield increased 25 basis points to 4.40% during the week.
- Global bond markets were in negative territory this week.
- High-yield bonds led for the week, followed by government bonds and corporate bonds.
