January 2, 2024 Market Moment

Market Moment

Glen Eagle®: America’s Women-Owned Trading Desk®  

1/2/2024

• Investors get nervous during election years. In fact, flows into money market funds are 3x higher in election years compared to the year after an election. However, The S&P 500 had negative returns in only 2 of the last 20 election years (2000, 2008). *1
• In 1990, just 4% of Americans held passports, a large contrast to today's figure of 49%. Many believe this will continue to act as a tailwind for tourism stocks over the next few years. 2
• US mortgage rates ended 2023 at 6.61%, the lowest level since May. This is a large decline from the peak of 7.79% in October, raising optimism that this drop in borrowing costs will likely drive increased demand for home purchases in the upcoming months. *3
• A record-high 72% of stocks in the S&P 500 underperformed the index in 2023. This marks a 30% increase in underperformance compared to 2022. 4

Sources:

1. Capital Group- "Investing in an Election Year"
2. Bloomberg Opinion - "Today 49% of American Have Passports"
3. Business Week- "US mortgage rates are ending the year at the lowest level since May, dropping to 6.61%"
4. Bloomberg- "Apollo Chief Economist"

*Past performance is not indicative of future performance

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This desk commentary is for informational purposes only 

Carol Ann Fernandez, Rob Michel, Grier Vacek 

(609) 631-8231 

www.gleneagleadv.com 

Glen Eagle Wealth, LLC | 4422C Route 27, PO Box 399, Kingston, NJ 08528-0399 

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