Even with everything that the pandemic had to throw at the economy, the four-year electoral equity cycle, whereby the fourth year of the presidential term delivers the highest returns while the mid-term year is usually the ‘sweet spot’ in terms of cheapness, seems inescapable. Markets have a lot to digest in 2024, with the potential ramifications of an uncertain presidential race topping the list. Labour markets are also nearing peak conditions, with some indicators suggesting a slowdown in hiring. However, the US equity market has been exhibiting impressive second semester momentum so far. Despite some signs of slowing economic growth,

Turbulent geopolitics, soaring inflation and tightening central bank policies have created a narrow and treacherous path for equity investors in 2022, leaving them with few options to diversify and balance their portfolios. The performance of the two most prominent asset classes in the world’s “safest” market shows just how challenging the environment has been. Since 1974, US equities and bonds have provided good levels of diversification. When equities have done poorly, bonds have risen to the challenge to compensate — and the other way around. Thus far, this year has been the only exception, with both equities and bonds suffering