As the owner of a money management company for local households, I am used to fielding questions on A) complex financial issues that require sophisticated solutions and B) the buzzwords of the moment. Investors tend to be in tune with the economic and market zeitgeist. I am always happy to converse about the things that excite, scare, or interest us the most—even if those feelings are sometimes just placeholders until the next latest thing buzzes in our ear and needs to be swatted away (or toward!) our investment portfolios. The Investopedia website isn’t short on queries, either.
Investopedia publishes investment news and boasts millions of readers each year. Those readers use the website’s search tool to understand the dynamics affecting their portfolios or household economics. The following are Investopedia’s most searched terms of 2024:
1. Inflation
Inflation, as measured by the Consumer Price Index (CPI), went from 2.6 percent in March 2021 to a staggeringly high 9.1 percent in June 2022 and worked its way back to 2.7 percent in October 2024. The cost of goods and services has dominated the conversation for three years. However, many households (i.e., non-economists) care more about the level of prices than the rate of inflation. The inflation rate may be going down, but that only means prices are rising at a slower rate; the cost of things, aggregately, is much higher than before the pandemic. It is such a weight on families that it likely was a pivotal factor in the U.S. election, as many Americans cited the economy as their top issue.
2. Tariffs
Speaking of inflation, the U.S. election almost certainly spurred the search for information on tariffs. A tariff is a tax that a country’s government imposes on goods imported from another country. They are a trade barrier that can serve several purposes.
During his first term, President Donald Trump levied tariffs on approximately $380 billion of products, which translated to an imposition of nearly $80 billion of taxes on Americans. That was one of the largest tax increases in decades. President Biden maintained those tariffs and added additional tariffs on $18 billion of goods.
During the U.S. presidential campaign, then-former President Trump (now president-elect) often pushed for even more tariffs. Most textbooks contend tariffs are inflationary. Given households’ sensitivity to prices, it is understandable that investors are worried about how that might affect them.
3. Nvidia
I probably wrote more about Nvidia in “Capital Ideas” in 2024 than any other company. And, by far, the most frequently asked question I would get at the grocery store, coffee shop, or gym in 2024 was “Should I buy Nvidia?” Nobody ever liked my answer (even though they didn’t seem to mind I had no idea of their financial needs, goals, timeline, risk tolerance, cash needs, etc.), which was: “Yes, most people should absolutely buy the S&P 500 index, which has more than a six percent allocation to the stock.”
When I talked to people, they didn’t care what the company did. They didn’t care about the earnings. They didn’t want to talk to me about data clusters, artificial intelligence, or chip design. They weren’t interested in a company; they were interested in a return. Seeing how the stock is up more than 150 percent year to date, I see how that would interest people, no matter what the company did. (FYI, I did a quick search just now and stopped at finding 10 stocks that are up more than 500 percent year to date. But nothing gathers a crowd like a crowd.)
4. Stock split
I was surprised by this one. I can only imagine that the interest in Nvidia spread to this term. In June 2024, the company split 10 to one. Nvidia was among 477 companies in 2024 that issued stock splits or reverse stock splits.
5. National debt
The sheer size of the national debt ($36 trillion) was possibly enough to prompt investors to search for more information. But I doubt that was enough. One thing I have learned in life is that numbers are only relevant when there is relativity. In 2024, the interest payments on the national debt surpassed the cost of national defense and Medicare for the first time.
That certainly puts things in perspective.
6. Homeowner’s insurance
The cost of home insurance skyrocketed in 2024. Unfortunately, homeowners simultaneously had to stomach the fact that insurers in some states would not cover every natural disaster. Some insurers completely abandoned covering certain states.
7. Student loan forgiveness
Former students experienced many ups and downs in 2024. The Biden administration pushed to wipe out the student loans of tens of millions of borrowers. Then, the 8th Circuit Court of Appeals struck down the plan. Then, President Biden struck back and pushed through a smaller-scale program. There was a lot to learn and a lot to navigate.
8. High-yield savings account
I don’t know about you, but I tried to keep as much money as possible out of banks this year—the interest paid on deposits was insulting. Although interest rates were the highest they have been for decades, banks were paying practically zero on deposits. Many banks tried to attract deposits by offering higher yields on Certificates of Deposits (CDs), but that was a poor option compared to high-yield savings accounts, such as the Schwab Value Advantage Money Fund, which typically paid a similar amount or more and weren’t locked away from you by the bank for months.
9. Bitcoin’s price
Enough said? If not, just know that its price skyrocketed to $100,000 per coin. Nothing attracts attention to an “investment” like a rapidly increasing price (even if the buyer doesn’t have any clue how to value it).
10. Money line bet
In a clear indication that investing became gambling and gambling became investing in 2024, the 10th most searched term on Investopedia had more to do with straight-up taking flyers. Of particular interest to the Investopedia crowd was the ability and interest to bet on the outcome of the U.S. elections.
Honorable mention: Backdoor Roth IRA
A backdoor Roth IRA is a tax-avoidance strategy that allows higher-income earners to contribute tax free to a Roth IRA. It is good to know that some investors were also interested in financial planning, not just rolling the dice.
Allen Harris is an owner of Berkshire Money Management in Great Barrington and Dalton, managing more than $700 million of investments. Unless specifically identified as original research or data gathering, some or all of the data cited is attributable to third-party sources. Unless stated otherwise, any mention of specific securities or investments is for illustrative purposes only. Advisor’s clients may or may not hold the securities discussed in their portfolios. Advisor makes no representations that any of the securities discussed have been or will be profitable. Full disclosures here. Direct inquiries to Allen at AHarris@BerkshireMM.com.
