Market Performance: December 12, 2023.

The stock market's performance in 2023 has been so strong that the S&P 500 has rallied nearly 20%, a large gain that many on Wall Street are labeling a new bull market.

The rally likely surprised most, given that the stock market’s double-digit tumble in 2022 was the worst since the Great Recession in 2008.

The Federal Reserve's battle with inflation hasn't been won yet, and despite progress, consumers are still paying more for goods and services than they were one year ago, hamstringing budgets and crimping economic growth.

The sharp increase in the Federal Funds Rate to 5.25% has kept many investors on the sidelines this year because of worry that higher rates would push us into a recession. So far, that hasn't happened, but that doesn't mean that the U.S. economy is humming along.

Things To Review With Your Financial Advisor Before The New Year

The end of the year is always a hectic time, and although some argue turning the calendar to a new year is capricious and arbitrary, most people (not to mention Uncle Sam) do not look at it that way.

Taxes:

Taxes are not quite as simple as you might think. Of course, the first place to look is at your year-to-date realized gains. Far sneakier than the realized gains you might see today are the capital gains distributions embedded in any mutual funds you own.

Liquidity:

A few years ago, there was not an opportunity cost associated with having too much liquidity (i.e., cash in a checking account). However, with interest rates now no longer stuck at zero, reviewing your cash balances is more important than it has been in recent history.

To that end, let’s look at things you may want to be discussing with your financial advisor before the clock strikes 11:59 on December 31.

Here Are 3 Common Holiday Money Mistakes and How To Avoid Them

For most families, the season of giving is the season of spending — and no other time of year offers more opportunities to spend too much. But if you can recognize and avoid a few common money mistakes, you can survive the season with your budget intact.

For most people, the concept of a gift involves merchandise you pay for at a store. But at least some people on your shopping list might be happier with the kind of present that money can’t buy.

These are the top three holiday money mistakes she says are most likely to get families into financial trouble this December, with tips on how to avoid them.

Alternative Investing