Weekly Investment Update: October 28, 2024

Oct 28, 2024 | Investment Updates, Weekly Investment Updates

market returns 10.28

Key Events: Earnings season update

With over 1/3 of the S&P 500 reporting earnings, 75% of companies have reported a positive surprise. The University of Michigan current and expected sentiment readings exceeded expectations indicating consumers as well as companies feel ok about their situation.

With less than two weeks before the election, the 165 already filed lawsuits are a harbinger of chaotic times in the days and weeks following the election.[1]

Market Review: Taking a breather

After hitting its 47th 2024 record on Friday, the S&P 500 took a breather. Small cap and international stocks fared worse, as risk aversion dominated.

Bond returns were negative as the market continued to digest decreasing expectations for rate cuts and inflationary implications of a Trump Presidency.

Outlook: Elections and volatility

While we focused last week on the long-term election-related implications for deficits, this week we focus on short-term expectations for market volatility.

The chart below illustrates the 165 lawsuits that have already been filed, compared to 62 that were filed in the 2020 election[2]. The 2000 election was decided by the Supreme court a month after election day.

Don’t be surprised if it takes days or weeks for the election to be decided and don’t let volatility affect your investment strategy. There has been a lot of thoughtful commentary written on which investments may benefit from a Trump or Harris win, but our focus is on the long term, anchored in sensible analysis of asset valuation and economic outlook. We counsel investors to stay disciplined and diversified.

 

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Navigator Outlook: October 2024

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This material is intended to be educational in nature,[3] and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. These materials are not intended as any form of substitute for individualized investment advice. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. OneAscent can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein.

[1] Source: FactSet – with 14% of S&P 500 companies reporting, 79% have beat earnings estimates and 64% have beat revenue expectations.

[2] Source: Committee for a responsible budget The Fiscal Impact of the Harris and Trump Campaign Plans-Mon, 10/07/2024 – 12:00 | Committee for a Responsible Federal Budget (crfb.org)

[3] Source: Market Returns reference the following indices: Large Cap – S&P 500, Mid Cap Growth – Russell Midcap growth, Mid Cap Value – Russell Midcap Value, Small Cap – Russell 2000, Developed – MSCI EAFE, Emerging – MSCI Emerging Markets, Aggregate – Bloomberg US Aggregate, High Yield – Bloomberg High Yield

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Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.