Election Ahead
With less than a week ahead of the 2024 presidential election, we thought that it would be helpful to review some of our previous commentary regarding elections and markets; it has been easy to get distracted with what feels like non-stop texting campaigns that I am sure most have been receiving. Capital Group noted that since 1933, there have been eight Democratic and seven Republican presidents, and the general direction of the market has always been up. The most significant takeaway is that what should matter more to investors than election results is staying invested.
Throughout the month the narrative has been growing louder that regardless of election outcome there is likely to be continued deficit spending, money supply expansion, and some degree of domestic trade protectionism. This has led to a selloff in treasuries as the 10 Year US government yield has risen from 3.8% at the start of the month to approximately 4.3%. Gross domestic product also increased at a pace of 2.8% annualized rate during Q3 which extended an approximate two-year streak of strong domestic growth despite higher borrowing costs.
https://www.capitalgroup.com/ria/insights/articles/how-elections-move-markets-in-5.html
GDP Data Source: https://www.bea.gov/data/gdp/gross-domestic-product
Treasury Yield Source: https://www.cnbc.com/quotes/US10Y
Information in this commentary is gleaned from third-party sources, and while believed to be reliable, is not independently verified. This content is not intended to be tax, legal, investment, or fiduciary advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Bernardo Wealth Planning recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial advisor. Past performance does not guarantee future results.