Positive signs from the economy and markets as America heads to the polls
Here’s what we’re looking at this week…
- Despite last week’s volatility, stocks have gained over 21% year to date through the end of October and about 38% from one year ago, likely driven by economic growth and rising corporate profits.1
- Earnings season is off to a strong start. Over half of S&P 500® companies have reported and earnings are up 9% overall for the quarter.2
- It’s not all good news though. A few disappointing reports from some tech companies have led to market volatility.
- Meanwhile, the US economy continues to show signs of strength, with GDP up by almost 3% over last year.3
- On the consumer front, optimism surrounding the economy and the job market has also given consumer confidence a bit of a lift.4 Additionally, consumer spending rose, likely supported by a strong job market and rising wages.5
- The US presidential election could go either way as national and swing state polls remain very close. It may take several days for a clear presidential outcome. In 2020, it took 4 days after the election to determine a winner, yet stocks rose through that period of uncertainty.6
Institutional Portfolio Manager, Strategic Advisers LLC
"With the US elections upon us this week, it may help to remember that stock markets have generally risen during election years. This has also been true for the year following an election. This was even true back in 2020, when it took time to determine the winner of the race. The S&P 500 Index rose by 18% in 2020 and another 29% in 2021. 2024 has been no exception, with US stocks up over 20% for the year so far."7
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For over 30 years, Strategic Advisers and its dedicated group of seasoned investment professionals have helped clients reach their financial goals. Our team of portfolio managers, with specialized areas of focus in asset allocation and specific asset classes, along with our deep quantitative and fundamental research, drive our investment selection and risk management decisions on behalf of our clients.