Don’t get too excited about a post-election bump. The historical pattern of stocks outperforming in the six months following an election has been fueled by a newly elected Congress increasing government spending or tax cuts that fulfill campaign promises and allow them to flex newly acquired political muscle. In the face of high inflation and recession fears, that seems less likely to take place than in years past.
But who knows? CPI data for October is scheduled to be released this morning, and while market consensus projects a slight dip in inflation, actual market movement will likely depend on the depth of the drop. If the data misses expectations and increases instead, JPMorgan analysts predict a 4-5% drop in the S&P 500. In other words, what happens next is very much in the air. If you’re among those attempting to prepare your portfolio or business for the uncertainty ahead, understanding market movements and strategies that set you up for success can give you a leg up. Keep reading to learn more.
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