With the U.S. elections just days away, uncertainty is at the forefront of everyone's mind. However, no president, regardless of party, can single-handedly steer the $57 trillion stock market. Over time, economic performance and corporate earnings have proven to be more influential than the occupant of the Oval Office. Historically, the market has favoured a divided Congress and presidency, as it minimizes the chances of significant changes. Investors should maintain a long-term perspective and avoid making impulsive decisions based on political drama.

Drawdowns are common in equity markets, with smaller ones happening frequently and larger ones, often tied to recessions, being rarer. The S&P 500 has seen 20%+ drawdowns every 4-5 years on average. Despite this, the “Buy the Dip” strategy has been an effective strategy since 2008, offering lucrative entry points during 10% pullbacks. We delve into this strategy, exploring the reasons why it might continue to payoff in the near future.

Global interest rates have remained elevated for nearly two years, leaving homebuyers, investors, and businesses on edge. It’s as if everyone is looking to the skies, hoping for a rate cut. While inflation was the dominant theme of 2023, the focus has now shifted to growth. We delve into what a potential Fed rate cut, leading to a soft landing, could mean for investors.

The magnificent 7 and their remarkable run have made numerous headlines in the past 6 months, naturally steering the narrative toward the narrow leadership in equity market returns. In this report, we delve into several critical aspects of stock market concentration. The U.S., which is more diversified than people give it credit for, and why something that feels like a potential top in equity markets might be fundamentally sound.

Quality investing involves buying shares in the world’s best companies. These companies have a strong edge over their competition and sustainable growth opportunities. The real draw is their ability to compound shareholders’ wealth over time despite the reigning economic regime. Harvesting the quality risk premium with disciplined portfolio management process has the ability to create long term wealth.

In Q1 2024, the financial markets demonstrated resilience amidst global uncertainties. Investors navigated through the volatility, focusing on sectors with strong fundamentals. Central banks’ policies continued to influence market dynamics, while technological advancements drove innovation in trading. Overall, the period highlighted the importance of diversification and informed decision-making in achieving investment goals.

The past 50 years have produced some great investments for the patient investors. We take a look at the most profitable ones and what current market positioning and sentiment could mean for markets going forward. We delve into what the potential risks are for complacency and crowding out. The current juncture may offer investors a once-in-a-generation opportunity to rebalance portfolios.

On January 19th, the S&P 500 soared to unprecedented heights, leaving investors both exhilarated and cautious. What happens after the champagne corks pop and the confetti settles? We delve into historical data, revealing surprising insights into how the S&P 500’s trajectory could potentially look from here.