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]
Politics and Markets
Articles and resources related to Politics and Markets.
Periodically during a presidential election cycle, we receive questions from clients about the desirability or wisdom of altering the composition of a portfolio based on what might unfold after the election. Dimensional Fund Advisors recently published an excellent new article addressing this topic titled, “Presidential Elections and the Stock Market.” In this article, Dimensional finds that historically, volatility and returns are not noticeably different based on which political party is ... [Continue Reading]
Summertime fireworks came a few weeks earlier than usual this year. But instead of blues, yellows, and greens, the early fireworks were a solid red. After strong recoveries from February lows, equity markets across the globe were jolted from their upward trajectories as they priced in the result of the British referendum to leave the European Union. The reaction of markets to the news of a “Brexit” was felt far and wide with stocks around the world shedding trillions of dollars on a single ... [Continue Reading]