Sixth Week of Gains on Wall Street

Edwin A. McKnight, LUTCF, ChFC®

October 22, 2024

Support CASA Rutherford County with McKnight Advisory Group

This holiday season, McKnight Advisory Group is partnering with CASA Rutherford County to support children in foster care. CASA’s volunteers advocate for children in court and work to secure safe, permanent homes for them.

Join our Toy Drive by donating a new, unwrapped toy ($20+) or a $25 gift card from Walmart or Target. Your gift will bring joy and comfort to these children during the holidays.

Details:

Deadline: December 2, 2024
Drop-off: McKnight Advisory Group, 1800 S. Rutherford Blvd., Suite 202, Murfreesboro

Help brighten a child’s holiday and show them their community cares.

Stocks posted modest gains last week, with quarterly earnings season in full swing and the election on the horizon.

The Standard & Poor’s 500 Index increased 0.85 percent, while the Nasdaq Composite Index rose 0.80 percent. The Dow Jones Industrial Average advanced 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 0.31 percent.^1,2

Six in a Row

Stocks bolted out of the gate as the week began. The S&P 500 and the Dow Industrials hit record highs, with the Dow crossing 43,000 for the first time.³

Midweek, news of stronger-than-expected retail sales report contributed to overall market momentum. Retail sales rose a seasonally adjusted 0.4 percent in September, topping economists forecasts.⁴

As the week wrapped up, the technology sector helped fuel a rally that pushed the S&P and Nasdaq to another record high. It was the sixth straight week of gains for the S&P 500, Nasdaq, and Dow Industrials.⁵

Closing The Gap

Fueled by a resilient macroeconomic backdrop and AI enthusiasm, Magnificent 7 companies have driven more than 40% of the S&P 500’s year-to-date return. This outsized contribution has been supported by robust earnings growth, which has significantly outpaced that of the rest of the index. Moving forward however, this gap is expected to narrow, presenting investors with opportunities to find potentially more competitive returns through equal-weighted indices.

^{Article from gsam.com: Closing The Gap}

“Never be limited by other people’s limited imaginations.”

– Mae Jemison

The White Screamer is a chilling legend from White Bluff, Tennessee, involving mysterious and terrifying screams heard in the woods. This entity is described as either a ghostly figure or a beastly creature, and it is believed to drive those who hear its cries to madness.

One version of the tale recounts a family that moved to a remote cabin in the woods. After hearing strange screams for several days, the father decided to investigate. He returned to find his family brutally slaughtered, and in the wake of this tragedy, he took his own life. Locals believe that the White Screamer was responsible for these horrific events.

To this day, residents report hearing the eerie screams, but the true nature of the White Screamer remains a mystery. Some believe it is a ghost or a cryptid, while others dismiss it as merely animal noises. Regardless, the legend endures, keeping the town on edge.

Historic Beef Stew Recipe (Medieval Version)

Ingredients:

1 pound beef (cut into chunks)
1 onion (diced)
2 carrots (sliced)
2 parsnips (sliced)
1 turnip (diced)
1 leek (sliced)
2 cloves garlic (minced)
2 cups water or ale (ale was often used in place of water or stock)
1 tsp salt
1 tsp pepper
1 tsp dried herbs (thyme, rosemary, or parsley)
2 slices of bread (for thickening)
Lard or beef fat for browning

Instructions:

In a large pot, melt the lard or beef fat and brown the beef chunks.
Add onions, garlic, and leeks, sautéing until softened.
Add carrots, parsnips, and turnips to the pot. Stir everything together.
Pour in the water or ale, adding salt, pepper, and herbs.
Let the stew simmer for several hours over low heat.
Just before serving, mash the bread and stir it into the stew to thicken it.
Serve with bread or on its own.

Modernized Beef Stew Recipe

For a modern update, we’ll add more flavor complexity, use healthier fats, and speed up the process using more efficient cooking methods while maintaining that hearty, comforting feel.

Ingredients:

1 pound beef chuck or stewing beef (cut into chunks)
1 large onion (diced)
2 carrots (sliced)
2 parsnips or sweet potatoes (sliced)
2 potatoes (diced)
2 cloves garlic (minced)
2 cups beef broth (instead of water/ale for deeper flavor)
1 cup red wine (for richness)
1 tsp salt
1 tsp pepper
1 tsp fresh thyme and rosemary (dried can be used but fresh adds a modern touch)
1 tbsp tomato paste (adds umami flavor)
2 tbsp olive oil (healthier alternative to lard)
1 bay leaf
1 tbsp cornstarch (optional, for thickening)

Instructions:

Heat olive oil in a large pot or Dutch oven over medium heat and brown the beef chunks.
Add the onions and garlic, sautéing until softened.
Stir in the tomato paste and cook for a minute to deepen the flavor.
Add the carrots, parsnips, and potatoes. Stir everything together.
Pour in the beef broth and wine, adding salt, pepper, thyme, rosemary, and the bay leaf.
Bring the stew to a boil, then reduce heat and let it simmer for 1.5 to 2 hours, or until the beef is tender.
To thicken, mix cornstarch with water and stir it into the stew, letting it cook for another 10 minutes.
Serve with crusty bread or over mashed potatoes.

Tax Incentives Can Help You Further Your Education

Tax credits help with the cost of higher education by managing the income tax you may need to pay. The two tax credits available are the American Opportunity Tax Credit and the Lifetime Learning Credit.

Some education savings plans offer tax benefits if the individual qualifies. Also, you may be able to deduct higher education costs – such as tuition, student loan interest, and qualified education expenses – from your tax return.

Knowing your potential tax benefits may save you money if you’ve always dreamed about returning to school, whether to further your career or just learn something new.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted fromIRS⁷

The Benefits of Brain Training

We know how important it is to exercise our bodies, but exercising our brains is just as important. When we continue to learn, our brains are better for it. Here are just a few benefits of “brain training,” or exercising your brain:

Improved executive functions
Improved working memory
Improved processing speed
Preserved cognitive health
Fewer problems with daily functioning
Better control over mental processing abilities

There are many fun ways to exercise your brain, one of which is to continue learning new things. Attend a pottery, painting, or foreign language class in your neighborhood, or check for discounts on community college courses. Another great way to exercise your brain is to socialize with others, spend time in nature, and practice mind puzzles, such as crosswords, Sudoku, or a game in a brain-training app.

Tip adapted fromAmerican Psychological Association⁸

How could Gail drive her car from Cleveland to Miami with a flat tire?

Last week’s riddle: If six pheasants are in a stand of cattails, and a hunter shoots one of them, how many will remain amid the cattails?
Answer:None, because the rest of the pheasants will fly away when they hear the shot.