Robertson Stephens Weekly Commentary – January 13, 2025

It should be a doozy of a week.  Financial markets are continuing to digest the extremely strong US nonfarm employment numbers from Friday while contemplating the release of a full load of inflation data.  Strong economic growth going into the first quarter seems well established, although, in truth, the announcement of 256,000 jobs created in December raises more questions than answers; labor force participation remained unchanged at 62.5%, and average hourly earnings grew 0.3%, down from 0.4% in November. Last week, US stocks and bonds were down. The MSCI EAFE (non US developed) and MSCI emerging markets indices outperformed the S&P 500. The best performing sectors in the S&P 500 were energy, health care, and materials. Across U.S. style & market cap indices, large-cap value did the best, and the value factor led more broadly. On the wealth planning front, we discuss navigating P&C insurance challenges after the LA Wildfires.