With election season upon us, it's interesting to consider what we can learn from historical data around equity market performance and election outcomes. Some investors naturally get jitters during an election season. Past experience bears out that staying in the market is the prudent course. NOTE: The information provided in this video is intended for clients of Carlson Capital Management. We recommend that individuals consult with a professional advisor familiar with their ... [Continue Reading]
Politics and Markets
Articles and resources related to Politics and Markets.
The market is digesting a large volume of new information, spanning from coronavirus and continuing trade war negotiations to a second inversion of the yield curve and, of course, an upcoming presidential election. Vanguard’s recent "Market Perspectives" touches on a number of these issues. While each issue is important for investors to be aware of, it's also important to remember that the market is constantly incorporating new information into stock prices, as well as expectations for ... [Continue Reading]
The economic policies being proposed by President -Elect Trump are not what we would traditionally expect from a Republican heading to the White House. Mr. Trump’s proposals, if enacted, would rely on increased borrowing to fund economic expansion, most notably on infrastructure and defense spending. Markets have quickly priced in the rising probability of this type of deficit spending by adjusting expectations for future growth in GDP and inflation. As such, bond prices have fallen and interest ... [Continue Reading]
As election results started to pour in on Tuesday night, the surprise outcome of a Donald Trump victory rippled throughout international markets. U.S. stock futures fell more than 5% as the uncertainty of what was happening led to a risk-off trading environment. By noon on Wednesday, not only had markets completely recovered from those losses, but they were well on their way to strong gains. While there are many uncertainties about our future, and questions to be answered regarding what type ... [Continue Reading]
While, as we write, broad equity markets are performing significantly better than futures markets had indicated they would last night, we still wanted to reach out regarding yesterday's election results and the related short-term market impact. Certainly the impact of the election carries with it a vast array of implications for the U.S. and the world. We want to be very cognizant in recognizing that and pointing out that our focus today for this message, and our activities today at CCM, are ... [Continue Reading]