Author: David I. Templeton, CFA, Principal and Portfolio Manager

Much of the equity market return in 2024 was driven by a handful of stocks. Over the course of last year there were short time periods where market breadth had improved, but the concentration of returns seemed to always win out. For the equity market advance to continue in 2025 broader participation in stocks would be beneficial. Expanding market breadth would likely benefit smaller company stocks and this is an area where investors might find an opportunity within the stock universe. Of course, after the strong large cap stock returns in 2023 and 2024, it would not be a surprise to see a market pullback at some point in 2025; however, given anticipated favorable earnings growth in 2025, equity market returns in 2025 are likely to be positive.

Our Winter 2024 Investor Letter provides additional insight and thoughts on 2024 and in the year ahead.

HORAN Capital Advisors, LLC is an SEC registered investment advisor. The information herein has been obtained from sources believed to be reliable but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HCA and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.