📈  Chart of the Week 11/3/2024

By Mike Allison

Year to date, the S&P 500 index is up 21.5% (Source: YCharts). As you can see from this week’s Chart, 2024 is about the best year evah! thus far - at least in the last 25 years.

With markets reflecting a fairly certain outcome to next week’s election, I think we have to ask ourselves… Now what?

My expectation is that more can go wrong than right from here, at least in the intermediate term if not the short term.

What if the election outcome isn’t so certain and the country is thrown into a constitutional crisis? Not reflected in the markets.

What if the bond vigilantes of the 1990s return and interest rates rise significantly, regardless of Fed policy? Not reflected in the markets.

What if there is a resurgent, second wave of inflation which would be consistent with historical precedent? Not reflected in the markets.

What if the AI driven semi-conductor cycle slows or pauses, causing the Mag7 stocks, which have driven the market cap weighted S&P 500 performance recently, to rollover? Definitely not reflected in the markets.

What should investors do? Well, I guess my best suggestion is…

Interested in reading more of Mike's weekly newsletters? Click below to view The Sunday Drive.

The Sunday Drive