Election Year Often Brings Stock Market Gains But Uncertainty Looms
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The stock market tends to perform well during election years due to optimism over future earnings growth and the likelihood of Federal Reserve interest rate cuts.
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History shows the stock market often bottoms out midyear during election years then rallies into November, a pattern that could repeat in 2024.
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Small caps and midcaps have attractive valuations compared to mega cap tech stocks, presenting opportunities for stock pickers.
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The election outcome could impact future tax policy, with tax hikes more likely under Biden.
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Gold has historically been an election year hedge against uncertainty, buffering portfolios during volatility.