Inflation has surged to the forefront of economic concerns in 2024, affecting consumers and businesses alike. The cost of living has risen sharply, leading to increased prices in everyday essentials like food, fuel, and housing. As central banks attempt to curb inflation through higher interest rates, the global economy faces slowing growth and increased financial strain.

For businesses, inflationary pressures have increased operational costs, making it harder to maintain profit margins. Many companies have been forced to raise prices, passing the burden onto consumers. This has led to a tightening of household budgets, reducing overall consumer spending, a key driver of economic growth.

While elections are unreliable signals for investors, they produce actionable information for financial planners. The party in the White House and in power in Congress will influence tax brackets, estate taxes, retirement plans, and many other rules and regulations

If our recent webinar, Apollo Lupescu reviewed the lack of correlation between election outcomes and market performance.

He grants that elections have major consequences for taxpayers, businesses, and the economy – e.g., tax policy, regulation, spending. Yet, often, the effect for markets is unpredictable and may defy expectations.

The S&P 500 fell 8.5% over two weeks in August. Does anyone remember this?Through September 30, the index was up 20.8%, the best start to the year since 1997. August was another example of a mini slide that feels momentous and then falls into history’s dustbin.

In July, the S&P 500 hit a milestone – the longest streak of days without a 2% decline since the Great Financial Crisis.

Even compared to 2021 and 2023, 2024 had been steady up to that point.