Staff Reports
With the presidential debate tonight, we’re continuously reminded that elections have consequences.
Though there isn’t a direct link between election years and the stock market, the S&P 500 was down in three of the last 16 presidential election years since 1960. This is especially poignant now as the economy is a top priority for Republicans and Democrats, and inflation is still widely viewed as a major problem.
The latest numbers show that more than half of Americans (54%) think Donald Trump will handle the economy better than President Joe Biden. Given how problematic the economy has been for most Americans and the overwhelming focus on it this election season, it’s a good time to take a midyear look at finances and consider some themes that have appeared.
Just this week, BlackRock released its 2024 Midyear Thematic Outlook, authored by Jay Jacobs, U.S. Head of Thematic and Active ETFs.
The outlook outlines the key themes investors should pay particular attention to.
The commentary focuses on two “mega forces” they believe to be the most compelling opportunities – artificial intelligence (AI) and geopolitics.
The swift movement toward AI creates one of the largest infrastructure efforts ever.
Worldwide AI “chips” revenue is expected to jump to $71 billion in 2024, a 33% surge from 2023. Jacobs noted that the power of AI data centers is expected to grow rapidly through 2030, writing, “The AI buildout, projected to continue throughout the decade, will require significant infrastructure investment, presenting investment challenges and opportunities.”
Due to geopolitical conflict and division, the global economy and supply chains are being reshaped. Since the pandemic—and in conjunction with geopolitical tensions — the United States has prioritized policies that bring production back domestically. This is causing a dispersion in U.S. technology stocks and reduced reliance on global supply chains. Given the shift, total construction spending on manufacturing in the U.S. increased nearly 4x in the last 10 years. It’s clear to see how geopolitics are impacting the U.S., policies and the economy – facilitating different opportunities to invest in domestic manufacturing and reshoring.
A key takeaway from Jacobs: “Investors may want to look beyond today’s market leaders to seek diversification and resiliency in their portfolios, uncovering underappreciated assets…that can potentially drive long-term growth.”
Though it’s hard to believe 2024 is halfway over, it serves as a good reminder there is still plenty of time to get finances in order ahead of a potentially tumultuous fall and election season.
More information on BlackRock’s 2024 Midyear Thematic Outlook can be found on their website.
One comment
Cultist Florida
June 27, 2024 at 5:07 pm
A father and his son, both pastors at a Melbourne church, and an Indian Harbour Beach repairman were found guilty by a federal jury in connection with their roles in the failed Jan. 6 insurrection.
The convictions of James Varnell Cusick Jr. and his son Casey Cusick — leaders of the Melbourne-based Global Outreach Ministries Church — and David John Lesperance came Friday at the end of a five-day jury trial before District of Columbia Circuit Judge John D. Bates.
Suspect James Varnell Cusick Jr., a Brevard County pastor, appears in this photo, taken from charging documents against him for his role in the Jan. 6 riot at the U.S. Capitol.
The jury found the three men guilty of knowingly entering or remaining in a restricted building or on grounds without lawful authority; disorderly or disruptive conduct in a restricted building; and violent entry and disorderly conduct on Capitol grounds, court records show.