November has proven to be one of the strongest months for stocks in 2024. Following a pullback in the latter half of October, markets traded relatively flat during the first two days of November. However, they gained significant momentum after the election on November 5th. Below are the November returns for the popular benchmarks that investors track (Data provided by Y-Charts & Commonwealth Financial Network):

• S&P 500 Index: +5.7%
• Dow Jones Industrial Average: +7.5%
• Nasdaq Composite Index: +6.2%
• Russell 2000 Index: +11.1%
• S&P Target Risk Moderate: +2.2%

The election is finally over—hallelujah! I was close to being able to recite every Ohio political ad verbatim, thanks to their relentless appearances in what felt like every other commercial. Now, we can all take a breather and enjoy four blissful years before the next presidential campaign kicks off. In our market update last month, we said, “Our view throughout the year has been that markets should continue their upward trend into year-end, aligning with typical election-year seasonality as long as there is a definitive winner (of the election). Conversely, prolonged ambiguity around the election outcome could bring additional market volatility”. We did get a definitive winner in President-Elect Trump, and markets rallied on the news.

With Republicans now in control of the White House, the House of Representatives, and the Senate, we anticipate an effort to pass significant legislation during the first two years of the Trump administration. Here are a few potential initiatives that could impact the markets and your finances:

• Lowering the corporate tax rate
• Extending and/or expanding the 2017 tax cuts for individuals and families, which are set to expire at the end of 2025
• Reducing regulations across various industries
• Passing a long-term government budget resolution
• Eliminating taxes on tips, Social Security benefits, and overtime pay

We’ll keep you updated as these developments unfold and assess how they may affect your financial plan.

Our outlook for the final month of the year remains optimistic. As highlighted in the graphic below by our friend Ryan Detrick, December stands out as the most likely month to finish positive during an election year.

Similarly, Grant Hawkridge, shared a chart that highlights the performance of the S&P 500 in December, going back to 1952, during election years.

We hope you enjoyed the Thanksgiving holiday with your families. As always, don’t hesitate to contact our team with any questions.