Markets in 2024 Surge Despite Election Uncertainty and Global Risks

As we approach the final stretch of 2024, much of the nation’s focus is on the upcoming U.S. presidential election. But while the political landscape remains uncertain, the markets are painting a different picture. September, traditionally a sluggish month for global equities, delivered an unexpected surge.

The S&P 500 gained 2.02%, marking its strongest September since 2013. This brought its year-to-date return to 22.08%, making 2024 the best presidential election year for stocks in almost 90 years (more on that).

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Bitcoin has been another standout performer. Once viewed with skepticism by traditional investors, the digital currency posted a nearly 8% gain last month, bringing its year-to-date growth to an astonishing 51%. With central banks adopting a dovish stance, the dollar has weakened, prompting investors to seek alternative assets like Bitcoin and gold as hedges against inflation and uncertainty.

What’s driving this unexpected rally? The answer lies in the coordinated efforts of central banks across the globe, which have begun cutting interest rates and injecting liquidity into the markets. This has fueled optimism, lifting a wide range of asset classes, from stocks to gold to digital currencies.