Politics and Markets: Preparing Your Portfolio

The video discusses the impact of election years on stock markets, highlighting typical patterns of volatility and fourth-quarter rallies. It examines the Federal Reserve's potential interest rate hikes, focusing on economic indicators like inflation and jobs data. The discussion also covers political gridlock's effect on markets, analyzing different political configurations. Finally, it explores momentum trading strategies, noting their performance and potential challenges in current market conditions.

What is the typical pattern of stock market behavior during an election year according to the text?

How does the Federal Reserve's meeting schedule relate to the upcoming election?

What are the implications of a Democratic President with a split Congress on market returns?

What are the key areas of agreement and disagreement between the candidates that could affect the markets?

What strategies are suggested for trading in the context of market volatility before a presidential election?