November 6, 2023 Investor Insights
Positive Post Primaries
November 6, 2023
Enjoy this week's "Investor Insights," a weekly newsletter highlighting the financial news you need and providing tips and tricks to help you make better investment decisions.
- Historically, since 1932, stocks have exhibited an average growth of 11.3% in the 12 months following the conclusion of election primaries, using May 31st as a reference point. This contrasts with the 5.8% growth seen in similar periods during non-election years. *1
- The 10 largest companies by market cap have been responsible for 96.5% of the S&P 500’s return in 2023. This is unprecedented. For example, the ten largest companies have had an average annual contribution to the S&P 500 of 29.8% in all positive performance years from 1993. *2
- Over various time spans, the S&P 500 consistently outperforms 5-year Treasuries with increasing frequency: 59% over 1 month, 65% over 6 months, 67% over 12 months, 83% over 10 years, 99% over 20 years, and 100% outperformance over 30 years. *3
- Starting In 2024, the IRS has raised the 401(k) contribution limit to $23,000, marking a $500 increase from 2023. Individuals will also be able to contribute up to $7,000 to their IRAs in 2024, up from $6,500 this year. 4
Sources:
- Capital Group - "Investing in an Election Year"
- Strategas - "Advance is Extraordinary"
- The Irrelevant Investor - "The Compound and Friends: The AI Moment Comes to Wall Street"
- Money Mag - "The IRS Just Increased the Amount You Can Save in Your Retirement Accounts"
*Past performance is not indicative of future performance
Disclosure: This information is furnished for the use of Glen Eagle Advisors, LLC, Glen Eagle Wealth, LLC, and their clients and/or contacts. It does not constitute the provision of investment advice to any person. It is not prepared with respect to the specific objectives, financial situation, or particular needs of any specific person. Investors reading this commentary should consult with their Glen Eagle representative/financial advisor regarding the appropriateness of investing in any securities or adapting any investment strategies discussed or recommended in this newsletter.
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