The first presidential debate between President Joe Biden and Former President Donald Trump caused a stir in the political landscape which could filter over into the financial landscape. As the election season heats up and polls change, uncertainty around who will win in 2024 may have an impact on the stock market. As new markets begin to emerge, how each candidate may handle and regulate those markets may differ, adding to uncertainty.
So I think we we are set up for, uh, more volatility, but I don't think investors should necessarily worry too much about that.Because, you know, stock market forecasters are generally terrible at politics, so that's the health warning.We've ever had, and neither of them are dealing with arguably the biggest political issue out there or macro issue out there, which is this yawning deficit and these rising levels of, of, of, of debt.
And, uh, you know, the economy is gonna grow 3% this quarter and inflation has come down, and we're about to start cutting interest rates.But, you know, the market is on track for the best year since 1995 which was 40 years ago.So again, I, I think the glass is half full, not half empty.I think the the the pillars of this bull market are not dependent on the politics and are a lot stronger.
So if the US is still about on on the cusp of hell in a hand basket status, let's wipe that away Any overseas markets. And interestingly, you know, China has at least as many tech stocks, if not more, uh than the US does. So the market is fine as long as the growth keeps delivering and the rate cuts are on the horizon, and I'm absolutely sort of in that camp.
And really, I would argue one of the biggest beneficiaries this year because of the potential for lower rates has been tech.All those results have been strong, but I think that sector has really benefited from the prospect of lower rates. Um, but I, I think you know, I think these valuations are very well supported, but I don't necessarily think they're gonna go higher.You know, interest rate cuts will help tech, but they're gonna help everybody else a lot more.
And I think a lot of you know the market's rise is now luring in more retail investors who see what a Keith Gill is doing.They probably missed out on video for the video's move for the past year and a half.Sort of here.But if you know we are overdue a pullback, right?We're gonna get a pull back.We have record amounts of cash on the sidelines, and I think this is maybe less about retail investors that have sort of been structurally long tech for a long time here.
Retail investor sentiment, you know, is is not off the charts, you know, either, um you know, the VIX is pretty low. I think if, uh, the economy keeps, uh, you know, chugging along and you get a little bit of multiple expansion, which I think lower interest rates would justify.Ben I. I think you just given me a case of Fomo.You know, as you, uh, you know, you think about the rest of the year.
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