📉 5 Key Market Moves Investors Should Watch After the Election Rally Fades

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After a brief surge in stock prices following the U.S. election results, markets have begun to cool. While investor excitement remains high in some areas, others are signalling a shift as economic concerns come back into focus.

Here are five key developments investors should pay attention to as the post-election rally starts to lose steam.

1. Fed’s Stance on Interest Rates Keeps Markets on Edge

U.S. markets took a dip recently after Federal Reserve Chairman Jerome Powell made it clear that the Fed is "not in a hurry to lower rates."

Federal Reserve Chairman Jerome Powell

Although the economy remains strong, Powell's comments raised doubts about a potential rate cut in December, causing investors to reevaluate their expectations. While inflation appears under control, Powell's "hawkish" tone suggests the central bank might not act as quickly as some had hoped.

This uncertainty has contributed to recent declines in major indexes, including the S&P 500 and Nasdaq.

2. Wholesale Prices Edge Up, But Inflation Still Controlled

October’s wholesale price index rose by 0.2%, slightly above the 0.1% increase from September. While this shows a mild uptick in inflation, the figures were in line with analysts' expectations. The core PPI, which excludes volatile food and energy costs, rose 0.3%, also meeting forecasts. Despite these increases, inflation remains relatively stable, suggesting that the U.S. economy is not overheating, but it’s still a concern that traders are watching closely.

3. Disney Soars with Strong Earnings Report

In the midst of broader market uncertainty, some companies are still thriving. Disney shares jumped 6.2% after the company posted strong fiscal fourth-quarter results.

A 74% year-on-year increase in net income, boosted by a profitable Disney+ and growing subscriber numbers, helped calm investor nerves. Disney’s success underscores how certain sectors—particularly streaming—are thriving, even when the broader market struggles.

4. The Resurgence of the Dollar and Gold’s Decline

A stronger U.S. dollar, fuelled by expectations of tax cuts and trade policies under President Trump, has had a noticeable impact on global markets.

Gold Price (XAU) down 6.3% since 5/11/2024

Gold prices have fallen nearly 7% since the election, as investors moved money into equities and bitcoin, which benefited from the post-election optimism. The rising dollar, which has reached a one-year high, is making gold more expensive for foreign buyers, and market analysts expect this trend to continue.

However, some experts believe that gold’s long-term prospects remain strong, especially if geopolitical tensions or economic risks rise.

5. China Bets and Global Risks Loom Large

Investor Michael Burry, famous for predicting the 2008 financial crisis, has made headlines by increasing his stakes in several Chinese tech companies. At the same time, he’s hedging those bets, signalling uncertainty about the global economic landscape. Burry’s moves are a reminder that, despite optimism in some areas, many investors are wary of global risks, especially in China and emerging markets.

Bottom Line: A Bumpy Road Ahead

The post-election rally may be fading, but there’s still a lot of optimism in certain sectors. As the Fed takes a cautious approach to interest rates and inflation remains manageable, investors are navigating a market that could be headed for a bumpy landing. While certain stocks, like Disney, continue to perform well, other areas, like gold and tech investments, are seeing volatility. For now, investors will need to stay alert as the market adapts to shifting economic signals.

As markets adjust to changing economic signals, many investors are looking for new opportunities to diversify their portfolios and stay ahead of the curve. While some sectors are facing uncertainty, others—like technology and innovation—continue to show strong growth potential.

One such opportunity is the rise of smart home devices, which are becoming an essential part of modern living, in particular, Ryse.

Amazon Bets Big on Smart Homes, You Can Too

VCs know how difficult it is to spot promising early investment opportunities. Even the Sharks from Shark Tank declined the offer to buy 10% of Ring for $700,000 - a decision they would regret when Amazon acquired Ring, turning the $700,000 into $10M!

RYSE is the smart-home brand poised to follow a similar trajectory. The founder pitched on Canada’s version of Shark Tank, Dragons’ Den and received two offers - it seems the Dragons’ learned from the Sharks’ mistakes. Don’t make the same mistake the sharks did.

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