There are many factors that impact stock market returns, but one common concern of investors is how the stock market will be impacted by a change in America’s President. In past election years, the S&P 500 Index has seen more positive performance than negative. Below we take a look at S&P 500 Index performance during presidential election years, which have historically provided positive gains for stocks.
Data Source: Morningstar/Ibbotson Associates
Observations:
There have been 23 elections since the S&P 500 Index began. In these election years:
- 19 of the 23 years (83%) provided positive performance
- When a Democrat was in office and a new Democrat was elected, the total return for the year averaged 11.0%
- When a Democrat was in office and a Republican was elected, the total return for the year averaged 12.9%
Historical trends do help make the case for stocks to enjoy a promising 2024. But, of course, past performance is no guarantee of future results. Still, the fact that these performance trends have been consistent tailwinds for stocks over time is notable, through periods of high inflation, rising interest rates, and recessions. In general, that is the way these go, which means do not let politics disrupt your long-term investment plan.
Past performance is no guarantee of future results. For illustrative purposes only and not indicative of any actual investment. The S&P 500 index is an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. Investors cannot invest directly in an index. Index returns do not reflect any fees, expenses, or sales charges. These returns were the result of certain market factors and events which may not be repeated in the future.
- Monday. April 15, 2024, is the deadline for filing a federal income tax return. Due to state holidays, residents of Maine and Massachusetts will have until April 17, 2024 to file their taxes. Please check the IRS's website for revised tax deadlines if you live in a state that may have experienced a recent natural disaster as there may be some relief for you.
- Savings held at banks are typically federally insured up to $250,000 per person per bank. A reminder that LPL Financial implements two automated FDIC-insured cash sweep programs for uninvested cash savings within your investment accounts — the Insured Cash Account (ICA) and Deposit Cash Account (DCA) programs. Should you have uninvested cash exceeding the typical $250,000 FDIC amount, your cash savings is automatically deposited across multiple participating banks so that each cash amount does not exceed $250,000 per bank to further ensure coverage. This automated distribution across multiple banksextends your FDIC coverage to a maximum of $2.5 million per person. Should you have any further questions about this process, please feel welcome to contact our office.
- If you have found value in the assistance, the personal bonds, and the trust that you and your advisor have formed, we would be honored if you could take a few moments to share your experienceas others have here. To submit a testimonial, please access our convenientTestimonial Submission webpageby entering the code ”8231”.
4 Facts About Capital Gains
When you sell a capital asset, such as an investment or a piece of property, the sale can result in a capital gain or loss. The IRS defines a capital asset as “most property you own for personal use or own as an investment.” Here are four facts you should keep in mind:
- A capital gain or loss is the difference between what you originally paid for the asset (your basis) and the amount you get when you sell the asset.
- You must include all capital gains in your income, and you may be subject to the Net Investment Income Tax if your income is above certain amounts. Consult a qualified tax expert for help.
- The IRS allows you to deduct capital losses on the sale of investment property. You cannot deduct losses on the sale of property that you hold for personal use.
- If your total net capital loss is more than the limit you can deduct, you can carry it over to next year’s tax return.
*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov
What is Cloud Storage?
Cloud storage is a service that allows data and files to be saved securely in a remote location and be accessed via multiple devices. These services are offered by third-party vendors who provide space on their servers “the cloud” to securely store the data. The vendor hosts the cloud by securely managing the servers used to store data. Cloud storage is a cost-effective alternative to storing files at your business.
One of the greatest benefits to cloud storage tools is the availability and cross platform accessibility. Most cloud storage providers offer a variety of access methods such as through a web browser, installed application, or mobile device app. The variety of methods provide a way to access your data regardless of your connection type or location.
In addition, cloud storage tools provide a secure and efficient way to backup important files and data in case of system failure or file corruption. Backing up your data to the cloud ensures you are able to retrieve these files quickly and easily even if faced with complete system failure.
Best Practices:
- Always use multifactor authentication if it is enabled for the service.
- Use complex passwords to reduce the risk of hackers infiltrating your cloud storage.
- Ensure your cloud storage provider encrypts data.
- There are many different cloud storage solutions, take your time to research which free or paid option might work best for you
The 22nd and 24th U.S. presidents had the same parents– yet the 22nd and 24th U.S. presidents were not siblings. Why?
___
Last Month's Riddle:Two men played five games of chess in the park. They both won the same number of games, yet none of the games they played ended in a draw. So how could this be?
Answer:They were not playing each other