Whether exasperated, elated, or exhausted over the election, the markets currently seem energized over potentially higher corporate earnings ahead.  After all, yesterday marked the 49th record closing high in 2024.

Allowing one’s political ideology to influence one’s investment decision is at one’s own peril.  This holds as true today, as it has over the decades.  However, changes can influence economic and market fundamentals – especially corporate earnings within specific sectors.  To that end, the goal is to assess how potential changes might impact the investment outlook.  

In the coming days, weeks, and months, strategists will sharpen their pencils with updated forecasts of corporate earnings and price targets, as they always do.  As greater clarity is offered especially regarding earnings, we will want to weigh in.  For now, the market is slightly elevated over longer term historical metrics.  However, should the outlook for earnings increase measurably, then the current value of the market is more reasonably priced than it might otherwise appear.

The pendulum swings.  This is true in politics, as it is in market outlooks, as it is in the response to different policies such as taxes, tariffs, and regulations.  Also, conceptual perspectives and rhetoric sometimes differ from details, logistics, and actual fruition.  And, let’s not forget geopolitical issues, and a debt ceiling deadline of January 1.  Historically, volatility has settled post-election relative to pre-election.  However, as always, uncertainties are with us.  Time will tell…

As always, we appreciate you and the confidence you continue to place in us.  Thank you for the opportunity!