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How holiday discounts could leave you spending more
Heavy discounts are expected to inspire shoppers to spend more this holiday season. But keep your budget in check while you go for the deals.
US stocks finished mostly higher on Monday
• Both the Dow Jones Industrial Average and the S&P 500 notched new record closing highs.
• Federal Reserve Chair Jerome Powell said the central bank’s 50-basis-point rate cut in September wasn’t a sign of more supersized cuts to come.
Here’s what to be on the lookout for today
• The August jobs report.
• In earnings, McCormick & Company, Nike, and Paychex will report.
What is the Presidential Election Cycle Theory?
To predict everything that happens in the stock market, you might just need a crystal ball. But there are many theories designed to help investors understand market dynamics.
One such theory is the Presidential Election Cycle Theory, which focuses on market’s performance after election day. And while past performance isn’t an indicator for future events, we’re only five weeks away from the presidential election, so this is an opportune time to check in on it.
A tough start. The first two years of a presidential term tend to have the weakest performance for stocks, per the theory, as the new administration is focused on accomplishing campaign promises, which can lead to new laws and regulations creating uncertainty and volatility.
Picking up the pace. But the stock market tends to improve in a president’s second term half, as the focus starts to shift to re-election.
A word of caution. It’s important to note that this theory hasn’t accurately reflected some recent administrations. It’s a theory after all, not a crystal ball.
Today’s top stories
Retirement might cost more than you thinkThe cost of things like home care and renovations for accessibility can take a serious toll on your retirement budget.
Read more >> What is MAGI?MAGI stands for modified adjusted gross income. It’s an important number to understand when determining which, if any, tax breaks you may be eligible to claim.
Read more >>Other news that caught our eye
- Ford plans to give new EV buyers free charging units in the fourth quarter, an industry first as EV sales continue to lag.
- California Governor Gavin Newsom vetoed an AI safety bill, which aimed to create guardrails for the new industry. Critics argued it could stifle innovation and drive companies out of the state.
- DirecTV will buy Dish TV and Sling TV as the satellite TV sector struggles against the rise of streaming. Private equity firm TPG will also buy a majority stake in DirecTV from AT&T.
Financial planner tip of the day
“Many checking accounts charge monthly maintenance fees, but you may be able to have them waived if you can meet certain requirements. Most commonly, you can skip the monthly fees if you set up direct deposits or maintain a certain account balance.”
Brian Walsh, CFP® at SoFi