The 2024 election is right around the corner. The recent victories of Former President Donald Trump at the Iowa and New Hampshire primaries have moved Election Day closer, as it seems that the two candidates have been chosen earlier than usual, setting the stage for a contentious rematch of the 2020 race.

But this time, Joe Biden will be the incumbent. What could that mean for the stock market this year? Diving into the data, first, we find the S&P 500 performs well during election years. Since 1948, the S&P 500 has finished election years with an average return of 6.9%. Next, note that during election years when an incum

With the S&P 500 having recently ascended to a fresh record high after such a strong 2023, it’s natural for investors to worry that valuations have become over-extended. On traditional valuation measures, valuations do appear high and it does seem reasonable to expect more moderate stock market returns going forward. Here we walk through several different stock valuation approaches to get a more complete picture and even make the case that they aren’t as pricey as they look.

Stocks Are Expensive by Traditional Valuation Measures 

Based on the most common valuation metrics, such as the price-to-earnings

Key Takeaways

• Semiconductors continue to lead the broader market to new highs.

• The growing integration and excitement around artificial intelligence (AI) has revitalized demand and optimism for the industry.

• World chip sales have returned to growth for the first time in roughly 18 months, while the largest chip manufacturer recently forecasted “healthy growth” for 2024.

• Historically, the return of growth in chip cycles has led to continued upside momentum in both semiconductor stocks and the broader U.S. equity market.

• Records have been on repeat for the semiconductor spa

Key Takeaways 

• Inflation expectations over the next 12 months have convincingly improved, giving the Federal Reserve (Fed) reasons to pivot. We will likely notice improving inflation dynamics later this week. 

• Risk appetite improved as investors considered bringing cash off the sidelines and into capital markets, pushing the markets to new all-time highs. 

• Building permits, a leading indicator of future construction, accelerated in December as builders expect the housing market to improve as borrowing costs fall. 

• The American Staffing Association’s staffing index hin