While the political landscape remains uncertain, the markets are painting a different picture.
As we approach the final stretch of 2024, much of the nation’s focus is on the upcoming U.S. presidential election. But while the political landscape remains uncertain, the markets are painting a different picture. September, traditionally a sluggish month for global equities, delivered an unexpected surge.
The S&P 500 gained 2.02%, marking its strongest September since 2013. This brought its year-to-date return to 22.08%, making 2024 the best presidential election year for stocks in almost 90 years (more on that later).
Bitcoin has been another standout performer. Once viewed with skepticism by traditional investors, the digital currency posted a nearly 8% gain last month, bringing its year-to-date growth to an astonishing 51%. With the Federal Reserve adopting a dovish stance, the U.S. dollar has weakened, prompting investors to seek alternative assets like Bitcoin and gold as hedges against inflation and uncertainty.Best Election Year for Stocks Since 1936
Election years often bring volatility as markets grapple with the uncertainty surrounding potential changes in leadership, but 2024 has proven to be an outlier. Central bank easing has provided a powerful tailwind, helping to stabilize markets and lift stocks higher, despite lingering concerns over who will occupy the White House next year.
In fact, 2024 is shaping up to be the best presidential election year for stocks in nearly 90 years. By the end of September, the S&P 500 had risen more than 22%, the highest return during an election year since 1936. Investors have embraced the Fed’s commitment to looser monetary policy, which has kept market sentiment buoyant despite the political backdrop.
