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Santa Claus rally in effect.

It’s that time again, when we all wait to see if Santa Claus will give a boost to our investment portfolios. The Santa Claus rally, which falls within the last five trading days of the year and the first two of the New Year, has been a pretty reliable bright spot. Historically speaking, we have experienced a Santa Claus rally over 79% of the time. It appears we might benefit from another such rally this year, as markets have been up so far during the specific period. Not too shabby of a way to ring in 2024.

2024 inflation and interest rate outlook.

The economic picture has continued to trend positively. The ever-present calls for a market meltdown or recession due to increased rates have begun to dissipate as GDP growth rates, consumer spending, and economic data remain persistently positive. All of this has occurred with a backdrop of rapidly declining and normalizing inflation rates. The storied soft landing is looking increasingly likely.

Here comes the election.

The 2024 presidential election is already in full swing and will undoubtedly have an impact on investment markets. Election years have historically been good years for markets. Whether this will be the case in the year ahead remains to be seen.