November 6, 2023 Market Moment

Market Moment

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

11/6/2023

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

Client Focused Trading® for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years.

Glen Eagle Wealth, LLC is a member FINRA and SIPC

This desk commentary is for informational purposes only

Glen Eagle Wealth, LLC

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