This quarter, the S&P 500® Index finished September at a new all-time high, posting a return of 5.89% following the start of a rate-cutting cycle from the Federal Reserve. Although the 2024 presidential race has been nothing short of unprecedented, the upcoming election should have far less impact on market performance than key long-term drivers such as corporate earnings, economic growth, and interest rates. With elements of the 2017 Tax Cut and Jobs Act set to expire in 2025, Kamala Harris and Donald Trump could impact fiscal policy and market sentiment; however, probable divisions between a Republican-controlled Senate and Democrat-controlled House of Representatives will likely prevent the passage of any sweeping reforms. In anticipation of shifting market dynamics, we share how maintaining a focus on economic growth and excluding political considerations from investment strategy can help investors navigate market cycles and capitalize on long-term growth.
