Market Performance: March 14, 2024.

US stocks slid on Thursday following the release of another hotter-than-expected inflation print. The reading served as one of the last pieces of data that could sway the Federal Reserve at its policy meeting next week.

The S&P 500 (^GSPC) and and the tech-heavy Nasdaq Composite (^IXIC) fell about 0.3%, while the Dow Jones Industrial Average (^DJI) declined closer to 0.4%. Shares of Nvidia (NVDA) and Tesla (TSLA) both fell roughly 4%, continuing a slide from the previous session.

The small cap benchmark Russell 2000 (^RUT) Index was one of the biggest laggards on the day, falling about 2% as investors scaled back bets for a June interest rate cut.

Rules From The World's Top Investors

Investors don't agree on much, but they do agree that making money in the market comes with a steadfast strategy that is built around a set of rules. Think for a moment about your early days as an investor. If you're like many, you jumped in with very little knowledge of the markets.

When you bought, you didn't know what a bid-ask spread was, and you sold either too early if the stock went up or too late if the stock dropped.

1. Dennis Gartman: Let Winners Run

Dennis Gartman published a daily investing newsletter called "The Gartman Letter" from 1987 up until his retirement at the end of 2019. His rule addresses a number of mistakes young investors make. First, don't sell at the first sign of profits; let winning trades run. Second, don't let a losing trade get away. Investors who make money in the markets are okay with losing a little bit of money on a trade, but they're not okay with losing a lot of money.

2. Warren Buffett: Do the Research

Warren Buffett is widely considered to be the most successful investor in history. Buffett gives two key pieces of advice when evaluating a company: First, look at the quality of the company, then at the price. Looking at the quality of a company requires that you read financial statements, listen to conference calls, and vet management. Then, only after you have confidence in the quality of the company, should the price be evaluated.

3. Bill Gross: Have Conviction

Bill Gross is the co-founder of PIMCO. He managed the PIMCO Total Return Fund, one of the largest bond funds in the world, and was the firm's chief investment officer before leaving in 2014. A universal rule that most young investors know is diversification, i.e. don't put all of your investing capital into one name. Diversification is a good rule of thumb, but it can also diminish your profits when one of your picks makes a big move while other names don't.

Ideas to refine your 2024 financial plan

A new calendar year can be a great opportunity to reflect on your financial progress in the previous year and review and potentially revise your financial goals for the coming year. That’s true for everyone, and it can be particularly important if you’re approaching retirement.

The good news: No matter your age, there’s plenty you can still do to fine-tune your financial plan, either on your own or with help from a financial professional.

By taking steps to improve your financial well-being before you clock out of work for good, you can help ensure a smooth transition into retirement.

Review your personal balance sheet or net worth statement

The foundation of every financial plan is the family’s net worth statement. “It all really starts with understanding your assets and liabilities so you know what your total net worth is,” says Mike Christy, regional vice president of advanced planning at Fidelity Investments.

“This allows families to understand the value of their of cash positions, taxable investments and retirement assets, as well as real estate, life insurance surrender value, long-term care policies and any business interests.” With an accurate net worth statement, families can then analyze their income, expenses, and overall asset allocation, with an eye toward developing a sustainable retirement plan.

Examine last year’s spending and forecast your cash flow

With a solid understanding of your net worth and assets, you can review your income and projected expenses for the year. Your income and expenses—money that comes in and money that goes out—form the basis of your financial plan.

Whether you adhere to a strict budget or loosely track your spending, now is the time to ask yourself: Is the method I’m using working for me? Ideally, your income will cover your essential expenses and savings contributions, and you have some money left over for nonessential (discretionary) purchases, like shopping, entertainment, and travel.

Evaluate and refine your financial goals for the new year

With a clear understanding of your assets and cash flow, you can review your goals, assess their attainability and make any necessary tweaks to your plan, including reducing expenses or increasing necessary savings. You could also start the annual process by reviewing your goals, but without a clear understanding of your current financial position it can be difficult to understand how sustainable your goals and overall plan are.

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