Following election day, markets often experience a short-term rally as investors anticipate changes under the new administration. Historically, however, these gains tend to fade after the inauguration, with a period of cooling off before markets resume their long-term growth path.
This volatility underscores the importance of prudent risk management, allowing us to navigate these fluctuations and keep portfolios aligned with long-term goals. We are positioned to participate in this rally right now but remain vigilant in managing risk as the environment changes.
Riding the Election Wave
- We believe the preservation of capital is key to consistent, long-term investment success.
- Our investment approach is grounded in economic theory and backed by quantitative analysis.
- Managing drawdown risk is a pillar from which we build our portfolios.
60-Second Breakdown: November 11, 2024
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
