With another election year on the horizon, it’s an opportune time to explore how the stock market typically responds to the buzz of national elections. Think of the stock market as a seasoned captain navigating through waters that occasionally turn choppy—election years bring waves, but experience and a balanced approach usually lead the way to calmer seas.

One interesting observation is that the market generally fares well when no single party controls the presidency, House, and Senate. Just as a captain uses both the compass and the stars to guide their ship, a split government helps guide the market by mitigating the likelihood of sudden, significant policy shifts. The graphic we've included in this newsletter illustrates this pattern, showing the positive performance typically seen in years with governmental balance.

This upcoming year, one notable event on our radar is the phase-out of certain provisions in the Jobs and Tax Cut Act with many aspects possibly sunsetting at the end of 2025. As these changes begin to take effect, we'll be monitoring how they might impact the economic landscape and, by extension, the market. It's like watching weather patterns: forewarned is forearmed, and we're here to ensure your investments are positioned to weather any storms.

*Historical performance is not indicative of future results