How the New Year Full of Politics Could Impact 2024 Markets

The year 2023 has been eventful in the financial markets. Economist Dan Basse from AgResource Company suggests the possibility of a market turnaround in early 2024. However, the upcoming presidential election year, 2024, introduces a level of uncertainty that could significantly impact market dynamics. Basse, though, emphasizes that this notion may not be entirely accurate.

“I think during a presidential election year, they're not going to let commodity markets and stock markets and everything fall apart. In other words, it's not in the best interests of politicians, and so, the Biden administration will keep spending, and the federal debt will go up even further from the $33.6 trillion where we are today. I do believe in the background of this, we have a falling U.S. dollar because of the large amount of U.S. debt, and with that dollar decline, every hedge fund that I have is looking for an opportunity. They want to have a little piece of commodities just because they think that they're getting priced low enough now that we can get some opportunities and a bounce going forward next year.”

“Look back at what's going on in our markets, the money has been leaving agriculture since May of 2022. And so, this has been a decline that goes back to not having speculative money, and it's in dairy, it's in crops. It's in everything. And so, that's why I said I'm trying to watch the money, and I think there's going to be somewhat of an inflow in the first quarter of next year.”