November 11, 2024 •Nathan Willis
Key Events: Trump wins, Fed cuts rates again
Trump won a resounding presidential election; Republicans retook the Senate and appear on the verge of maintaining their control of the house.
The Fed lowered rates by ¼ percent, despite strong GDP growth and a stock market at all-time highs.
Market Review: Markets charge ahead
Stock markets reacted positively to the election and rate cut: the S&P 500 had its best week of the year, and smaller company stocks performed even better.
Bond returns were slightly positive despite expectations for stronger growth, higher deficits and higher inflation under a Trump administration.
Outlook: Blue skies ahead – for now, at least
As markets reacted to a larger than expected Trump margin of victory, Republican control of the Senate and - possibly – the house, growth expectations ramped up and stocks cheered.
We hope you won’t be surprised if, after the strongest week of the year for stocks, we suggest investors temper their enthusiasm.
While economic growth appears to be strong, expectations are that a Trump Presidency will increase deficit spending and tariffs. While these may have short-term benefits, neither bodes well for the long term, where our focus lies.
We counsel investors to stay disciplined and diversified. Don’t let your politics change your financial plan; do, however, let your vote count. Turnout declined this election[1]. We urge you to vote for fiscally responsible candidates.
Election turnout declined in 2024
Navigator Outlook: November 2024
This material is intended to be educational in nature,[3] and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. OneAscent can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein.
[1] Source: Wikipedia. 2024 election turnout is estimated.
[2] Source: Market Returns reference the following indices: Large Cap – S&P 500, Mid Cap Growth – Russell Midcap growth, Mid Cap Value – Russell Midcap Value, Small Cap – Russell 2000, Developed – MSCI EAFE, Emerging – MSCI Emerging Markets, Aggregate – Bloomberg US Aggregate, High Yield – Bloomberg High Yield
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