Category: Elections

01
Nov

Midterm Elections: Quick Facts on the Market Impact

Content provided by Shana Sissel, CAIA, Portfolio Manager The U.S. midterm elections are just around the corner, and investors remain concerned about how the results could impact the equity markets. The answer is simpler than many may think: The midterm elections have historically been positive for U.S. equities. It may sound odd not to consider...
09
Nov

Election Reflection

The inauguration of President Barack Obama, January 20th 2009.  Unrecognizable crowds in the Washington DC Mall.

Content provided by Grant Engelbart, CFA, CAIA, CLS Portfolio Manager

It’s no secret that markets hate uncertainty. Trump presents uncertainty – and markets reacted that way overnight. S&P 500 Index futures were down nearly 5% at one point, but have come screaming back to trade positive on the day. Sound familiar? Following the surprise Brexit vote, markets reacted in similar fashion.

Why the snapback? Despite the uncertainty, Trump has made it clear that he wants fiscal stimulus. Whether through infrastructure spending or tax cuts, in general these policies are supportive of economic growth. Interestingly, one of the largest gainers on the news was copper – moving higher by nearly 4%. Copper is a classic gauge of global economic growth.

Despite the lack of historical precedent, history can give us some guidance. On average, markets have traded lower the day following a presidential election, so it shouldn’t be all that surprising that we opened lower. It is commonly suggested that a Democrat in the White House is favorable for stocks, but actually, historically, a Republican in the White House with a friendly Congress has been quite strong for equities.

Regardless of your feelings on the election, keep in mind that one person does not run our country. The forethought of the checks and balances system has gotten us to where we are today. As global asset allocators, we will continue to search for opportunities in all asset classes – and there are plenty of opportunities in today’s market. There will always be something to worry about and reasons to keep money on the sidelines.

 

 

The views expressed herein are exclusively those of CLS Investments, LLC, and are not meant as investment advice and are subject to change.  Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. This information is prepared for general information only.  It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report.  Past performance is not a guide to future performance.  Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk.  These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

 

2640-CLS-11/9/2016

09
Nov

First Wednesday of November

Regardless of your political affiliation, Wednesday was a tough day for markets. Typically the day-to-day changes in the market are not necessarily a concern to the long-term investor. However, there were some interesting developments yesterday. The following chart, which was published before the election, predicted reactions of some industries based on the victory of each respective party: These...
07
Nov

Why Should I Invest Now?

Right now, investors are facing economic headwinds: slowing global growth, disappointing earnings releases, and the infamous approaching fiscal cliff. However, there are plenty of reasons to stay invested or start investing now, even with the fear and uncertainty that surrounds the financial landscape. Reasons to stay invested: Within the next year, uncertainties will dissipate. The fiscal cliff...
31
Aug

Treasure on the Streets of Chicago

Prior to my kids starting school, our family spent a long weekend in Chicago. There were many fun things to do and see, especially for kids ages six and nine. We went to the top of the John Hancock building, visited the Museum of Science and Industry and the Field Museum, spent the day on...