,

Tax & Policy Uncertainty

,

Now that the election is over, what will the new administration prioritize in the new year? Here are a few things we’re watching in the months ahead:

The debt ceiling debate may reignite in early 2025.

The debt ceiling, the cap on the total amount of debt the U.S. can hold, has been suspended as part of a deal made in the last Congressional fight. (1) When the cap returns in January, it may kick off a fresh round of debates and draw attention to the more than $35 trillion the U.S. holds in debt.

,

Trump Wins: And Markets?

,

President Trump has won reelection; what does that mean for investors?

Let's discuss.

As of this writing, Republicans have won the White House and a Senate majority, and may win a House majority. (1)

Markets reacted to the news by rallying to new record highs. (2) Does that indicate they see president-elect Trump's promises as favorable for stocks? Or is it simply a reaction to an end to election-related uncertainty? History can offer us some clues.

,

Elections and Markets

,

What do presidential elections mean for your portfolio? Should you change your investing strategy based on who wins? Elections bring a lot of noise, and I wanted to dispel some market myths around this election.

Myth #1: Elections usually bring big market swings.

You would think elections cause major market shifts (given all the politicking and intense emotions). However, history shows that elections historically don't influence market performance as much as the economy does.

Fed Cuts, Now What?

The Federal Reserve recently voted to cut interest rates, shaving 0.5% off the benchmark . (1)

Markets rallied exuberantly at the news, reaching new highs. (2)

Why did the Federal Reserve cut rates?

With inflation on a strong downward trajectory and concerns about economic weakness rising, the Fed clearly decided now was the right time to cut. The size of the cut was a surprise to many, who expected a quarter-point cut and could indicate that the Fed feels strong action is warranted. Some analysts believe lowering interest rates will lower the risk of a recession and increase the odds of a “soft landing” for the economy. (3)