Two the Point — Election Aftermath: Fading the Noise & Finding Growth

With the election behind us, we’re focusing on the broader economic picture, where fundamentals take center stage over short-term political reactions. Here’s a snapshot of this week’s insights:

• Small-cap Strength: Following the election, small caps saw a strong boost, reflecting a broadening of market strength that we’ve anticipated.
• Rising Bond Yields: Treasury yields climbed as markets weighed fiscal stimulus expectations and federal deficit concerns, adding some short-term volatility but perhaps creating opportunity for long-term investors.
• Resilient U.S. Economy: GDP growth reached 2.8% in Q3, driven by solid consumer spending and capital investment, with consumer resilience continuing to support overall growth.
• “Fade the noise” Approach: History shows that initial market reactions to elections often fade, reinforcing the value of focusing on the long-term economic fundamentals.