[Altos Weekly Traders Edge] The 2024 Elections and Your Portfolio...Details Inside

Sponsor [The #1 AI Stock NOBODY Has Ever Heard Of...]( The Man Who Correctly Called 4 of the Top 6 Performing Stocks of This Century... Now Says [This Obscure AI Stock Will Be the Biggest Winner of the AI Revolution.]( [The Reason Why Will Surprise You.]( The 2024 Elections and Your Portfolio: What to Watch Out for in Terms of Policy Weekly Market Overview Hi Traders, The market is often sensitive to uncertainty, especially when an election is approaching. However, history shows that elections do not have a significant impact on the long-term investment outlook, but they may create some volatility in the short term, especially as the primary contests and the lead-up to the November general election coincide with the deadlock between Congress and the White House on issues such as federal budget, immigration policy and foreign assistance. We are keeping an eye on some areas that could be influenced by the election result, and that could have implications for investors: Tax policy is on the table Tax policy is one of the most immediate areas that could change depending on the election outcome. The discussion about extending some of the tax provisions that expired in 2023 has made this issue a priority in 2024. 2025 will bring even more urgency to deal with tax policy, because most of the individual tax provisions from the Tax Cuts and Jobs Act will expire after 2025. The Congress and president elected in 2024 will have to focus and act on these tax policies after the elections. If the Democrats win, both the executive and legislative branches, they will likely revive the “Build Back Better” agenda. Notably, the lack of Senator Joe Manchin (D-WV) and a difficult cycle for Senator Krysten Sinema (D-AZ) could make these initiatives more feasible if there are fewer moderates in the Senate. A Republican-led government would present a more complex scenario. The need for bipartisan agreement may still exist, especially if the margin of control is very narrow. Moreover, Republicans are more likely to protect the Tax Cuts and Jobs Act and are unlikely to seek major reforms. In the case of a split government, expect a more conciliatory approach. More regulations likely in a second term The election outcome often determines the direction and speed of regulatory changes, especially in a second term. Drawing parallels from President Obama’s 2012 reelection, a win for President Biden could mean a go-ahead for a number of regulatory proposals that have not been finalized yet. The SEC has already proposed more than 60 rules, along with other proposals from various other federal agencies. Investors should prepare for potential changes in sectors affected by these regulatory changes, such as finance, health care and technology. Geopolitical risks are still high With several ongoing conflicts (Ukraine/Russia, Israel/Hamas, China/Taiwan), geopolitics remains a major concern. Despite political differences, there seems to be a bipartisan consensus on taking a tough stance with China. Both the Trump and Biden administrations maintained a strict policy towards China, indicating continuity in the U.S.'s strategic approach. There are ongoing efforts to enhance U.S. capabilities to compete with China from both the executive branch and Congress. Elections can trigger emotions - that’s why investing during an election year may seem difficult. But investors should focus on fundamentals over feelings. Elections matter, but more because of policy and less because of politics. Investors should stay invested, diversify their portfolio, and pay attention to specific policies. - The Team at Altos Trading In the next article: Strong economic indicators like a robust labor market, rising business loans, and potential Fed rate cuts suggest a sustained bull run in the stock market, despite some remaining concerns. Sponsor Are you suffering from trader burnout? The fact is, many traders are going to be wiped out by the next step of the economic downturn… But [Jack Carter’s “Income for Life” initiative]( could be the alternative to the headaches and heartbreak you might experience on your own. With one straightforward two-step trade, Jack is teaching Americans of all market experience levels how they could be targeting an extra $500 each week…. And it doesn’t matter if there’s a bad CPI number if the Fed is raising rates, or, yes, even if we’re in the middle of a bank crisis. Jack unveiled every detail of his “two-step” strategy in a recent private briefing… And he’s placing one of these trades [LIVE on camera]( for you to see: By clicking the link above you agree to periodic updates from Jack Carter Trading and its partners ([privacy policy]( Economic Signals Hint at Continued Stock Market Gains The stock market appears ready to charge ahead in 2024, fueled by robust economic indicators and promising policy shifts. While caution is always warranted, several key signals suggest a sustained bull run is brewing. Thriving Labor Market Paints a Rosy Picture: January's jobs report delivered a resounding vote of confidence in the economy. Adding 353,000 jobs, exceeding expectations, and witnessing a healthy 0.6% increase in average hourly earnings above inflation paints a picture of a thriving labor market. Although seasonal adjustments might have influenced the data, the underlying trend suggests continued prosperity for middle-class and wealthy consumers, driving consumption and economic expansion. Remember, consumer spending is the powerhouse of the American economy, contributing roughly two-thirds of its output. Loan Growth Signals Business Confidence and Expansion: Billionaire investor Ken Fisher rightly emphasizes the importance of loan growth for gauging economic health. Rising loans to businesses enable expansion and hiring, fueling economic activity. Notably, bank credit has been steadily climbing since June 2021, reaching $12.28 billion in January 2024. This increasing access to capital fuels business confidence and expansion, creating a positive feedback loop for the economy. Fed Pivot to Rate Cuts Offers Tailwinds: Federal Reserve Chair Jerome Powell's recent comments hinted at potential interest rate cuts later in 2024, music to the ears of investors. "Dialing back policy restraint" translates to lower borrowing costs, potentially stimulating investment and economic activity. Fundstrat analyst Tom Lee specifically predicts these cuts to benefit banks, regional banks, and small-cap stocks, broadening the current market rally. This wider participation would solidify the bull run's foundation. Oil Prices: Lower for Longer, Boosting Growth and Inflation: Despite geopolitical tensions, oil prices remain remarkably subdued. This can be attributed to two key factors: the rise of electric vehicles and plug-in hybrids, impacting demand, and the absence of major supply disruptions. As oil prices drop in the medium and long term, inflation pressures ease, giving the Fed further room for rate cuts. This combination – lower oil prices and accommodative monetary policy – creates a fertile ground for economic growth and sustained market gains. Caveats and Cautions: While the aforementioned indicators paint a bullish picture, prudence is vital. Unforeseen global events, trade disputes, or policy missteps could disrupt the current trajectory. Inflation remains a concern, and its future behavior will heavily influence the Fed's monetary policy decisions. Additionally, potential seasonality distortions in the latest jobs report necessitate further confirmation from upcoming data releases. Conclusion: Despite these caveats, the overall economic signal appears positive. A strong labor market, rising business loans, potential Fed rate cuts, and subdued oil prices point towards a continuation of the bull run in the stock market. Sponsor [New Customers earn 5.25% APY* (variable)]( Store your money with Cash Reserve, a high-yield account built for peace of mind. New customers earn 5.25% variable APY*—that’s 13x higher than the national savings rate. ** Plus, your money’s FDIC-insured up to $2M†at our program banks and no limits on withdrawals and transfers. **The national average savings account interest rate is reported by the FDIC (as of 5/15/23) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000. [Sign Up Now!]( Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. 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Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](