Is This 1968 All Over Again?

There's one big difference in 2024… Published By Money & Markets, LLC. July 24, 2024 Published By Money & Markets, LLC. July 24, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( "History Repeating:" Is This 1968 All Over Again? Money & Markets Daily, 1968 was one of the most divisive years in American history. The nation was locked in an unpopular war. The economy was wracked with inflation. And a recession had just triggered one of the largest speculative runs on gold in history. And that year’s presidential election only served to highlight just how deeply divided the country was. In March, President Lyndon B. Johnson announced to the world that, despite being the incumbent, he would not seek reelection to the White House. This set the stage for a combative nomination process for Democrats and three nights in Chicago that the world would never forget. Democrats descended upon the Convention, eager to crown their next candidate, who would replace Johnson at the top of the ticket. But the real news was happening right outside Chicago’s International Amphitheater that night… Out in the street, thousands of protestors clashed with police to demonstrate against America’s involvement in the Vietnam War. Meanwhile — just a few feet away — America’s Democratic leadership was locked in their own battle to determine who their presidential nominee would be. That’s right… If you feel a sneaking suspicion that history is repeating itself today … then you’re not far off. Today, we live in a similarly divisive political environment. So it’s possible that a closer investigation of that fateful 1968 election (and its aftermath) could give us some clues about the future of America’s economy and today’s stock market. Let’s dive in… --------------------------------------------------------------- [Turn Your Images On]( [35X Wealth Multiplier: The Secret to Unlocking the Biggest Stock Market Gains]( Thanks to one hidden anomaly, you now have a chance to target stocks with the biggest profit potential and multiply your wealth, month after month. Extensive analysis on thousands of stocks and backtest on a decade and a half of market data shows that it had the power to unlock the biggest stock market gains. [Click here to get all the details.]( --------------------------------------------------------------- A Poor Start to 1968 … Until Johnson’s Speech The S&P 500 started 1968 off flat, bouncing between readings of 95 and 96. Then, on January 22, the index started to move down, closing just above 94 … and it didn’t stop declining until March. In total, the index dropped 9.3% from its early high in January to its bottom at the beginning of March. Then it hovered just below 90 points until Johnson gave his famous televised speech turning down the opportunity to represent the Democratic Party in the presidential race: [Turn Your Images On] Johnson delivered his speech on Sunday, March 31. The following Monday, the S&P 500 jumped 2.5%. From the day after Johnson’s speech to the end of 1968, the S&P 500 gained 12.3%. Note: The index hit a top of 108.37 just weeks after Republican Richard Nixon defeated Democratic Vice President Hubert Humphries after a brutal campaign season — a gain of 17.2% from the time Johnson bowed out of the race. Now, it’s not necessarily fair to attribute the market rebound to Johnson’s removal from the race. Alongside him declining the nomination, he also announced a pause in the bombing of North Vietnam — a deeply unpopular policy. Fast Forward: How the Market Responded to Biden's Exit Jumping back to the present… Faced with pressure from high-ranking Democrats, President Joe Biden decided last Sunday to withdraw from the presidential race. From Sunday night — after the announcement was made — to before the market opened Monday morning, the market responded in a similar fashion to when Johnson stepped aside in 1968: S&P 500 and Nasdaq Post Premarket Gains After Biden’s Announcement [Turn Your Images On] [(Click here to view larger image.)]( Nasdaq futures posted a 1.2% gain, while S&P 500 futures were up 0.6% in the hours after Biden removed himself from the presidential race. One big difference is that, unlike 1968, the S&P 500 has been on an incredible run since the start of the year … sans a dip in April. While the market reacted somewhat similarly to Johnson and Biden’s announcements, the setup leading to them was very different. What This Tells Us About the Months Ahead Like 1968, this year has produced questions about inflation and a sitting president taking himself out of the race. It also leads to a potentially chaotic Democrat National Convention in … of all places … Chicago, where Democrats could see a battle for their nomination (although Vice President Kamala Harris looks to have this all but locked up after securing the delegates she needs earlier this week). We also see political divisiveness similar to what ripped at America during the Vietnam War. Unfortunately, what happened in 1968 doesn’t give us much insight into what to expect in the market for the rest of the year. There are too many unanswered questions about the Federal Reserve’s interest rate policy, the movement of the U.S. economy, and the outcome of the presidential race on November 5. As a smart investor, these recent changes should give you some pause about your portfolio and how you manage it. We’re shy of 100 days from Election Day, and a lot can happen between now and then. Likewise, sentiments can shift even after the election is decided. That's why we at Money & Markets emphasize "adapting" to the ever-changing market so much. And Chief Investment Strategist Adam O'Dell [is ready to show you how to do precisely that.]( Until next time… Safe trading, [Matt Clark, CMSA®]( Chief Research Analyst, [Money & Markets Daily]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [Y2K ALL OVER AGAIN (CYBERSECURITY MELTDOWN 2024)]( - [RETIRE FROM JUST ONE INVESTMENT]( - [POLL RESULTS + A "STRONG BULLISH" STOCK OUTPACING THE S&P 500]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. 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It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](