The US economy is strong, presenting a wide range of opportunities for investors, while the rest—election headlines and short-term market volatility—is just noise. With inflation cooling and the Federal Reserve expected to cut interest rates again, now is the time for investors to capitalise on long-term growth prospects.
This is the message from Nigel Green, CEO of deVere Group, one of the world’s largest independent financial organisations, ahead of this week’s US presidential election and the US central bank meeting starting Wednesday.
The election is too close to call, with an NBC News survey showing the race for the White House deadlocked at 49%-49%.
He says: “While the political landscape is causing distraction, savvy investors who are serious about wealth creation know that the underlying strength of the US economy is what matters most. The Federal Reserve’s expected rate cuts further enhance the positive outlook for those focused on sustainable growth.
“Despite political uncertainty leading up to the US presidential election, the economy continues to demonstrate robust health.
“GDP growth has remained solid, driven by resilient consumer spending, strong business investment, and record-low unemployment rates. US consumers—who represent the largest component of economic activity—are showing confidence through increased spending, bolstered by a steady rise in wages and a cooling inflation rate.”
Recent data from the Department of Commerce showed that US GDP grew at an annual rate of 3.5% in the last quarter, exceeding analysts’ expectations.
This steady growth has been supported by strong retail sales and resilient industrial output. The labor market also continues to outperform, with unemployment sitting at 3.8%, a near five-decade low.
“The fundamentals are undeniably strong. What we’re seeing is an economy – the world’s largest – that’s still firing on all cylinders, creating opportunities for investors who take a long-term view,” continues Nigel Green.
“With inflation under control and interest rates set to decrease further, sectors like tech, healthcare, and consumer goods are particularly well-positioned for growth.”
Another key driver of optimism is the Federal Reserve’s response to cooling inflation. Having cut rates earlier this year for the first time in over four years, the Fed is widely expected to lower rates again at its upcoming meeting. The move is aimed at supporting continued economic expansion, providing even more fuel to an already-strong economy.
For investors, this creates a favorable backdrop. Lower interest rates typically reduce borrowing costs, encouraging businesses to invest more and consumers to spend, which spurs economic growth. Moreover, lower rates tend to make stocks more attractive compared to bonds, driving more capital into the equity markets.
The deVere CEO notes: “Rate cuts are like wind in the sails of an already-strong economy. With inflation no longer a major concern and growth continuing, this is a prime moment for investors to focus on sectors with significant upside potential.”
While election uncertainty is fueling some market volatility, deVere Group advises that investors avoid being swayed by political noise.
Instead, the focus should remain on the economy’s underlying strength and the strategic opportunities created by recent market dynamics. The long-term outlook remains highly positive for investors who can see beyond the short-term distractions.
“The presidential election will dominate the news cycle, but as investors, we need to stay focused on the fundamentals. This is a moment of opportunity, and those who act now will benefit in the long term. Investors who focus on the bigger picture will see substantial rewards,” concludes Nigel Green.
