Will 2024’s nervous markets throw up decent bargains?

A quarter of the world’s population is going to the polls this year — including elections in America, the UK, and the EU. Political uncertainty makes markets nervous.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

2024 year number handwritten on a sandy beach at sunrise

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Stock markets hate political uncertainty — look no further than the plunging markets that we saw post-referendum, or at the end of Liz Truss’ short-lived premiership.

And this dislike of political uncertainty is unfortunate, because if there’s one thing that it looks as if 2024 is going to major on, it’s political uncertainty.

Major elections in over 60 countries are due to take place in 2024 — making it the biggest election year in history, according to the New Statesman. Overall, it notes, over two billion people are going to go to the polls this year, roughly a quarter of the world’s population.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Markets aren’t too nervous — yet

Now, elections don’t always bring political uncertainty in their wake. Few of us doubt the outcome of the election in Russia, for instance.

But in the economies in which most of us hold our financial assets — the UK, the United States, Europe, and broad chunks of Asia Pacific — elections are by and large free, fair, and unrigged.

So the outcome is always going to be surrounded by some uncertainty.

Markets aren’t especially nervous — yet — with America’s S&P 500 hitting a new record high of 4,840, and the UK’s FTSE 100 trading around the same 7,500 level that it’s been for most of the past few years, pandemic excepted.

But that could — and most probably will — change as we get closer to autumn, when America goes to the polls, and when political pundits reckon Rishi Sunak will likely call an election. The European Union’s elections are even earlier, and just as unpredictable.

Gradual decline, not sudden plunge

How might we expect this nervousness to manifest itself?

In two ways, I think.

First, it won’t be like — say — the sudden crash that we saw post-referendum, or in February and March 2020 as the reality of lockdowns emerged.

Confidence will evaporate more slowly, as the election nears.

Second, there will be moments when markets will take fright, driven by opinion polls, or political candidates’ statements regarding their intentions.

So think of it as a series of descending steps, rather than a vertiginous plunge.

Keep your powder dry

The upshot is clear: investors are being given notice that bargains may well be on offer in the late summer and autumn.

What to do? How to play this?

Right now, I think I’d be tempted to keep my powder dry: hold back some investment capital, so as to be able to take advantage of market developments later.

There are no guarantees, of course, that any bargains will be on offer at all: markets may turn out to be more sanguine about this political uncertainty than I expect.

But I’m guessing that’s unlikely. If nothing else, it’s the sheer scale of what’s going on in 2024 that makes upsets more likely: so many voters, so many elections, and so much existing geopolitical tension as the background.

Good investments — at an even better price

Here at The Motley Fool, we’re mostly patient, long-term, buy-and-hold investors. We look for decent businesses, with decent prospects and decent upsides, and — ideally — with high-calibre managers whose interests are aligned with ours.

And if — as happens — markets conditions operate so as to make the share price a little cheaper than usual, then, hey, we don’t complain.

So a little judicious patience could well turn out to be amply rewarded.

This AI stock is attracting investors like Michael Bloomberg and Peter Thiel…

Why are these legendary investors, already wealthy beyond imagination, drawn to this opportunity? The allure lies in more than just potential returns; it's a vote of confidence in a company poised for long-term success.

Imagine a revolutionary AI company that's not just participating in the digital media landscape but reshaping it entirely.

Trusted by giants like Amazon, Disney, and Netflix, the company reported nearly £637 million in revenue last year, marking a robust 7.8% growth over three years. Its impressive market reach and spirit of innovation are just the beginning of its story.

Best of all, we’re thrilled to offer you an exclusive glimpse into this game-changing AI investment, absolutely free.

Get your free AI stock pick

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

Up 10% in a month! Is the abrdn share price set for the biggest comeback since Lazarus?

The Abrdn share price has been through hell but now there are signs that it may be coming back again.…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Dividend Shares

Can the Rolls-Royce share price be a top performer again in 2025?

The Rolls-Royce share price has been flying high, but can it keep soaring? Ken Hall has his say on the…

Read more »

A Black father and daughter having breakfast at hotel restaurant
Investing Articles

Should I eat some humble pie and buy Tesla stock?

After being wrongly bearish on Tesla stock last year, this investor is left wondering if he should just bite the…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

After falling 6% in a week, should Microsoft be on my list of stocks to buy?

With OpenAI being surpassed by DeepSeek’s cheaper and more powerful LLM, is now the time for investors to consider buying…

Read more »

Investing Articles

Up 7%! Here’s 1 AI growth stock that had a surprisingly good week!

As the world of AI has been rocked by a small startup in China, one former growth stock might have…

Read more »

Dividend Shares

Which FTSE 100 bank stock is the best value right now?

Ken Hall looks at which FTSE 100 bank stock is his top value pick after a stellar past 12 months…

Read more »

Investing Articles

Is it game over for the GSK share price?

Harvey Jones isn't having much fun playing the GSK share price game. The FTSE 100 pharmaceutical stock must work hard…

Read more »

Investing Articles

Down 45% in a year, is the Ocado share price about to soar?

Christopher Ruane explains why the Ocado share price is down -- and sets it in a wider context as a…

Read more »