How to Invest During an Election Year

Plus: Can US stocks continue defying expectations, what a strong economy will mean for investors, and is Micron stock a buy. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=55440&elqTrackId=1ffc618ef2724530a1a22e398b42565f&elq=74498bfd2d32471cad31230701c43887&elqaid=55440&elqat=1&elqCampaignId=28161) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [Oil and Water: How to Invest During an Election Year]( - [What a Strong Economy Now Means for the Rest of 2024]( - [US Stocks Beat Predictions Over the Past Decade. Can They Do It Again?]( - [13 Top-Performing Large-Blend Funds]( - [Micron Stock Soars With the AI Boom—Is It a Buy or a Sell?]( - [GE Aerospace Stock Has Skyrocketed 86%. Is It a Buy?]( With seemingly little to stand in their way, stocks continued to push to record highs. We’re going into midyear with the Morningstar US Market Index up a solid 13%. What makes this rally all the more remarkable is that it has come even as expectations for Federal Reserve interest rate cuts have been slashed, with central bank officials now thinking they will lower rates [just once in 2024](. As John Rekenthaler notes, this year is just one in a string of many in which the market has outperformed expectations. His [latest column looks back]( digging into how and why US stocks’ have beat predictions. It’s a great read. So at the risk of looking foolish, this past week, [I spoke with Ivanna Hampton]( about what could be in store for stocks in the second half of 2024. Of course, one of the biggest events on the horizon is the US presidential election in November. As we get closer, there’s the potential for market turbulence and investors to start making decisions based on politics. But as Danny Noonan writes, understanding elections' historical impact on markets is [likely the smartest way to go](. (And if you missed it last week, here's Rekenthaler's take on [the stock market and this year's election]( This past week, we also looked at two big movers in the market: Micron, which is up 69% this year, and GE Aerospace, which is up 60%. Do Morningstar analysts think these stocks are a buy after these big rallies? We check in with [Nicolas Owens]( on GE and [William Kerwin]( on Micron. Lastly, we screened for the top-performing funds in a core part of just about every investor’s portfolio: large-blend funds. (Think the S&P 500.) While actively managed funds have had a tough time beating the market, we found seven top performers from the group. Also, while sustainable investing has been beaten up in some sectors, we found two top-performing ESG funds. Here’s [our full list of 13 large-blend funds](. That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [Oil and Water: How to Invest During an Election Year ]( [Oil and Water: How to Invest During an Election Year]( An evidence-based approach—rather than a focus on politics—has shown its worth. Danny Noonan [Find Out More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [What a Strong Economy Now Means for the Rest of 2024]( [What a Strong Economy Now Means for the Rest of 2024]( What’s next for the bond market, Nvidia, and tech stock dividends? Tom Lauricella, Ivanna Hampton [Micron Stock Soars With the AI Boom—Is It a Buy or a Sell?]( [Micron Stock Soars With the AI Boom—Is It a Buy or a Sell?]( The chipmaker’s stock is up 66% this year, but its business remains cyclical. Leah Breakstone [After Earnings, Is Adobe Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Adobe Stock a Buy, a Sell, or Fairly Valued?]( With clear leadership in AI, here’s what we think of Adobe’s stock. Dan Romanoff [After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued?]( With AI sales above expectations and a 10-for-1 stock split, here’s what we think of Broadcom’s stock. William Kerwin [GE Aerospace Stock Has Skyrocketed 86%. Is It a Buy?]( [GE Aerospace Stock Has Skyrocketed 86%. Is It a Buy?]( A series of strategic spinoffs has left GE a more focused company. Oratile Matome [These Fund Managers Don’t Eat Their Own Cooking]( [These Fund Managers Don’t Eat Their Own Cooking]( They don’t have a penny invested in the funds they manage. Stephen Margaria [US Stocks Beat Predictions Over the Past Decade. Can They Do It Again?]( [US Stocks Beat Predictions Over the Past Decade. Can They Do It Again?]( The math behind the market’s surprisingly strong performance. John Rekenthaler [13 Top-Performing Large-Blend Funds]( [13 Top-Performing Large-Blend Funds]( ETFs from Fidelity, JPMorgan, and Invesco stand out. Frank Lee [Cage Match: Traditional Index Funds vs. ETFs]( [Cage Match: Traditional Index Funds vs. ETFs]( How do they stack up when it comes to costs, trading capabilities, and taxes? Christine Benz, Margaret Giles [2 Undervalued Dividend Stocks the Best Managers Are Buying]( [2 Undervalued Dividend Stocks the Best Managers Are Buying]( Some top concentrated fund managers bought these cheap dividend stocks trading at big discounts. Susan Dziubinski [10 Stocks the Best Fund Managers Have Been Buying]( [10 Stocks the Best Fund Managers Have Been Buying]( Though the market is having a strong 2024, top investors are still finding undervalued stocks to invest in. Susan Dziubinski [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Nike corporate earnings and PCE Price Index coming up. Leah Breakstone [3 Great Funds for the Class of 2024]( [3 Great Funds for the Class of 2024]( The greatest adventure is about to begin. Jason Kephart [How to Use Small-Cap Stocks in Your Portfolio]( [How to Use Small-Cap Stocks in Your Portfolio]( What you need to know about the advantages and risks of investing in small-cap stocks. Amy Arnott [Are Target-Date Funds Good Investments?]( [Are Target-Date Funds Good Investments?]( Why they may deserve broader adoption outside of company retirement plans. Christine Benz [Is It Time to Ditch Your Money Market Fund for Longer-Term Bonds?]( [Is It Time to Ditch Your Money Market Fund for Longer-Term Bonds?]( Cash won’t pay 5% forever, and strategists say bonds can be a bright spot for investors even as rates fall. Sarah Hansen Chart of the Week [Jumping On High Yields, Investors Head for Target Maturity Bond Funds]( [Jumping On High Yields, Investors Head for Target Maturity Bond Funds]( This small but growing fund category can offer more predictable returns. Gabe Alpert [Get the Details]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [The Best Growth Funds]( These growth stock mutual funds and ETFs earn top ratings from Morningstar. Tori Brovet [The Best Cyclical Stocks to Buy]( These 10 undervalued consumer cyclical stocks look attractive today. Sbidag Demerjian [The Best Dividend Funds]( These dividend ETFs and mutual funds earn high ratings from Morningstar. Tori Brovet [The Best Balanced Funds]( Morningstar analysts’ top picks for hands-off investors. Jason Kephart [The 10 Best Dividend Stocks]( These undervalued stocks with reliable dividends are worth considering. Susan Dziubinski [Morningstar Company Reports]( See More Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=55440) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602