Impressive US stock market rally yesterday and political winds
Posted By RichC on July 11, 2024
Those of us following the stock market and managing investments can’t help but smile at the strong U.S. financial markets on Wednesday and so far this summer. 
For some who “sell in May and go away” (as the idiom goes) … they are are not smiling quite as much.
As a long term value investor, I’ve been surprised at the continuing strength in the stock market, although employment is still reasonable strong, company earning have not disappointed and all signs point to the Federal Reserve easing rates later this year.
There isn’t any certainly to the political winds, but conditions are improving for the Republicans after the poor debate performance of President Biden and concern 
over his aging. Conservatives are hoping for a less restrictive and business friendly Federal government if 
they can make gains in Washington DC. Donald Trump remains a bit more of a quandary, even though we know what he has been like from 2016-2020. He’ll likely be a little more protectionist (tariffs and sanctions) and likely focus on tighter immigration policies (enforce them). This should in turn should be good for American workers (higher wages), but could in turn push up prices for goods and services (inflationary). Hm … and we all know what that has been like these past few years.
For now, if you are invested for retirement, etc … the strong move in U.S. stocks and easing inflation should be helpful for your college savings plans, 401-Ks and IRAs.
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