AIQ - Election 2024: Economics Policy And Positioning For A Soft Landing

2024-07-25 03:20:00 ET

Summary

• The S&P 500 enjoyed a solid start to the year, fueled by the Federal Reserve embracing optimism about inflation without sacrificing growth.
• As investors look toward the second half of 2024 and into 2025, the resilience of the U.S. economy should be more evident, laying the groundwork for further positive gains.
• With the potential for gains across asset classes and despite meaningful differences in both presidential nominees' approaches to trade, geopolitics, and fiscal policy, the main risk for investors ahead of the 2024 election would be to cash out.
• Looking beyond the election, some structural issues could impact markets and are worth investors’ attention.

By Seema Shah, Chief Global Strategist

The S&P 500 enjoyed a solid start to the year, fueled by the Federal Reserve embracing optimism about inflation without sacrificing growth. During Q2, however, evidence of still sticky inflation has reduced the number of expected rate cuts, weighing on market sentiment and resulting in more modest equity gains....

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