IMPORTANT DISCLOSURE INFORMATION
The following presentation by New England Capital Financial Advisors, LLC (“NECFA”) is intended for general information purposes only. No portion of the presentation serves as the receipt of, or as a substitute for, personalized investment advice from NECFA or any other investment professional of your choosing. Please see additional important disclosure at the end of this penetration. A copy of NECFA’s current written disclosure Brochure discussing our advisory services and fees is available upon request or at www.newenglandcapital.com.
Markets, Elections, and the Value of Patience
Stock prices have put investors’ emotions through the wringer since the midterm elections.
On Wednesday, stocks rallied as market participants seemed to welcome greater clarity about the political landscape. As one trader said, “The stock market prefers certainty of a conclusion more than it cares about any particular outcome.”
By Thursday, however, sentiment reversed. By the close, the Standard & Poor’s 500 Index (S&P 500) had fallen more than 4 percent, and the Nasdaq Composite had moved into correction territory, meaning a decline of 10 percent or more from a recent high.1,2
Wednesday’s enthusiasm turned into Thursday’s discouragement. The markets refocused on spending for AI infrastructure, including data centers, which has hung over market sentiment for the past few months as investors anticipated a change in Washington, D.C.1
Sharp sentiment swings around technology cycles are nothing new. In early 2025, concerns surrounding low-cost AI models from DeepSeek triggered sudden volatility across chipmakers and AI hyperscalers only for fundamentals to reassert themselves over time.3
So, it’s important to keep in mind that election outcomes are just one piece of a much larger economic picture. For example, so far in Q3, 82 percent of S&P 500 companies have reported better-than-expected earnings, and 70 percent have reported better-than-expected revenue.4
Also, on Friday, the Bureau of Labor Statistics reported the economy added 165,000 jobs in October, well above economists’ forecast of 59,000.5
Markets move in cycles, which include pullbacks. Between 1954 and 2025, the S&P 500 experienced declines of 5 percent or more about twice a year on average and declines of 10 percent or more roughly once every 18 months.6
Recoveries can begin before sentiment or headlines improve. From 1996 through 2025, 76 percent of the S&P 500’s best single days occurred during a bear market (a decline of 20 percent or more from a recent peak) or within the first two months of a new bull market.7
So, if you find yourself getting anxious, remember the insight from Charlie Munger, Warren Buffett’s longtime business partner: “The big money is not in the buying and the selling, but in the waiting.”
Volatility can feel uncomfortable, but your strategy was built with your risk tolerance in mind. History shows that markets have difficult periods from time to time that can be frustrating. If you have questions about recent market activity or you’d like to talk through your strategy together, we’re always glad to hear from you.
1. CNBC.com, November 5, 2026.
2. The S&P 500 Composite Index is an unmanaged index that is considered representative of the overall U.S. stock market. The Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and is considered a broad indicator of the performance of stocks of technology and growth companies. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.
3. Fortune.com, January 27, 2025.
Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, timeframe, and risk tolerance.
The forecasts or forward-looking statements are based on assumptions, subject to revision without notice, and may not materialize.
4. Insight.Factset.com, October 30, 2026.
5. CNBC.com, November 6, 2026
6. CapitalGroup.com, 2026
7. HartfordFunds.com, 2026.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by New England Capital Financial Advisors, LLC [“NECFA”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from NECFA. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. NECFA is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the NECFA’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.newenglandcapital.com. Please Note: NECFA does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to NECFA’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a NECFA client, please contact NECFA, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.