PQS – Managing Through Election Cycle Volatility & Beyond
Sep 23, 2024
As the 2024 US Presidential election begins to heat up, investors will be looking to see if historical election-cycle market trends continue and how to position their portfolios accordingly.
As the 2024 US Presidential election begins to heat up, investors will be looking to see if historical election-cycle market trends continue and how to position their portfolios accordingly.
- The economy, especially the labour market, is crucial for election outcomes; strong economies tend to favour incumbents, but reelection chances have varied in the presence of a recession.
- Equity markets tend to show moderate gains during election years, while fixed-income assets often outperform due to looser Fed policies.
- Policy uncertainty, which typically impacts both equity and fixed-income markets, is usually high before elections but is expected to be lower in 2024 due to familiar candidates and established policies.
- We believe investors would do better to think beyond immediate volatility and focus on adapting strategies to position their portfolios for the medium-to-long-term environment.
Please read the full paper below.
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