RADNOR, PA — Lincoln Financial (NYSE: LNC) has released its newest Market Intel Exchange report, offering valuable insights curated from its in-house investment expertise and partnerships with top asset managers via the Multimanager Platform. The report provides crucial perspectives on the Federal Reserve’s recent rate cuts, the impact of presidential elections on markets, and how investors can view market volatility as an opportunity.
As the Federal Reserve embarks on its anticipated monetary easing with a 50-basis point rate reduction, the focus shifts from inflation to the labor market. Investors are now evaluating how these rate cuts will influence their portfolios. Historically, U.S. equities have shown positive returns following rate cuts, though outcomes heavily depend on the prevailing economic conditions. Despite potential fluctuations, maintaining focus on long-term financial goals is essential, as historical data indicates positive stock performance over a five-year horizon, even amidst recessions.
The report also addresses market behavior around presidential elections. As the upcoming election nears, potential volatility may arise in equity markets. However, historical patterns suggest that this volatility often subsides quickly post-election, with markets typically rallying afterward. On average, markets have gained roughly 16% in the months following an election, and about 11.6% annually over the subsequent decade. Regardless of the election outcome, patience and a balanced portfolio have historically rewarded investors.
Market volatility, often seen as a challenge, is presented in the report as a potential opportunity for investors. Data from the CBOE Volatility Index (VIX) shows that investments made during periods of high volatility have historically yielded higher returns. Viewing market fluctuations as an opportunity may empower investors to remain steady and potentially capitalize on these periods to enhance their long-term investment strategies.
Jayson Bronchetti, Chief Investment Officer at Lincoln Financial, emphasized the value of the report, stating, “Lincoln Financial is proud to bring timely market insights and data to financial professionals and their clients every quarter. In partnership with our dedicated team of investment professionals and our robust multimanager platform, we continue to help our customers achieve their long-term investment goals.”
Through these insights, Lincoln Financial aims to equip investors with the knowledge needed to navigate the current market landscape effectively, providing clarity and guidance in a rapidly changing financial environment.
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