The Presidential election year is nearly upon us. Since 1945, the S&P 500 has posted an average double-digit total return increase (and rose 100% of the time) when an incumbent was up for reelection. In addition, the Russell 2000 (since 1972) and Nasdaq Composite (since 1980) also posted mid-teens advances and gained in price more than 85% of the time. Will 2024 record a similar surge now that the Fed has finished raising rates and the market is in the second year of this bull market?
Ken Leon, CPA, Director of Equity Research, Was the moderator.
Sam Stovall, Chief Investment Strategist, discussed how current conditions may confirm or alter historical precedent and share CFRA’s selections in what has historically been a surprisingly profitable year.
Angelo Zino, Vice President - Equity Research, provided CFRA’s outlook on the Information Technology and Communications Services sectors, emphasizing trends tied to AI, the cloud, and digital ad spending. Also, we offered insights for each Magnificent 7 heading into 2024.
This webcast offered advisors a better understanding of the following topics:
- Key factors expected to impact the 2024 equity market – Fed policy, interest rates, earnings, and valuation.
- Election year sentiment on the market and different election outcomes for the White House and Congress.
- Fundamental views on how AI is reshaping technology in cloud, semiconductors, and digital advertising in social media.
- Magnificent Seven profile weighing the 2024 risk/reward with significant concentration in the S&P 500 and the broader market.
