Private Equity Co-Manager Discusses Market Influencing Factors
Mark Hauser Talks About the 5 Factors to Influence Investment Markets in 2024.
Author:Darren McphersonReviewer:Dexter CookeMay 02, 20246.8K Shares183.9K Views
Mark Hauser, co-managing partner at Hauser Private Equity, highlights five key factors shown to influence the investment market.
[City, State]: Mark Hauser, private equity professional, announced that the investment market will see several influences in 2024. The co-managing partner came forward recently to comment on the changing market behavior and how it will likely evolve.
With significant changes, such as the US presidential election coming around the corner,private equity principal Mark Hauserhighlighted the five factors that would most likely affect the market of investments.
The 2024 Presidential Election Is a Strong Factor
The elections for new US presidents have always influenced how the market behaves, creating different opportunities for investors. 2024 is expected to set a strong tone for the next four years due to the differences in political views for both candidates. Both parties have different opinions on what the United States’ role should be on the world stage, which leaves a lot of uncertainty for the future.
As one might predict, these changes could significantly affect the stock market. Investors are advised to shift their focus accordingly to account for the evolving political situation. Stock prices might fluctuate considerably as the campaign develops but could continue after the final election.
The crypto landscape is also expected to change during the elections. In fact, Ethereum, Bitcoin, and other cryptocurrencies were brought up during American Presidential primary debates. It’s clear that there are plans surrounding crypto and crypto investments, but both candidates have different ideas regarding these currencies. Based on a national survey, many young voters want to know the stance of the candidates before they vote, and that’s primarily because 46% of voters want to see extra policies before becoming crypto investors.
“Investors should remain advised on potential market reactions as the elections go forward,” advises private equity professional, Mark Hauser. He recommends creating a strategically advised portfolio to help reach an investor’s long-term goals. This can keep their strong position as the elections bring a transition period marked by uncertainty.
The Federal Reserve Board Proposed Interest Rate Cuts for 2024
The Federal Reserve Boardis responsible for setting target interest rates in the United States. Banks will use the available funds to lend and borrow from one another, and its impact will generally last for a little over a year. However, the nature of the stock market makes it easy for it to respond quickly to these changes.
In the last month of 2023, the Federal Reserve Board proposed three interest rates for the year to follow. Still, this action led to a fair amount of confusion amongst investors, as there was no mention of their magnitude or timing. As a result, no one could predict how an investor’s holding could be impacted and whether or not they would drop in value.
Investors Should Understand the Rate Impact on Stock Prices
Very often, low interest rates could prompt investors to take more loans for their projects and security purchases. Hauser advises careful consideration, as more investments in the market could potentially lead to an increase in stock prices. Conversely, high interest rates could make stocks less desirable, leading to investment losses.
As the year advances, investors in the stock are advised to gain more understanding of the interest rate fluctuation. This knowledge could help them make better decisions so they do not find themselves in a risky position.
Global Geopolitical Events Can Affect the Financial Market
The financial market of the United States can be significantly affected by various geopolitical events. Things such as China’s interest in Taiwan, the Middle East Conflict, and the Russian-Ukraine war could substantially affect the investment market of the United States.
For instance, Bitcoin and crypto are significantly affected during times of geopolitical unrest. In 2023, there were already concerns regarding the crypto market from the first days of the Middle East conflict. Furthermore, during the trade between China and the U.S. in the 2018-2020 period, Bitcoin experienced more price volatility, making potential investors unsure of what they should do.
Hauser recommends that investors stay in touch with the news and create diversified portfolios to reduce the impact. He recommends consulting with a professional financial advisor to make better decisions for their financial movements.
The Biggest Fluctuations Will Likely Be Seen in Alternative Investments
Alternative investments have gained a lot of movement over the past few years, with digital assets holding a powerful position. Cryptocurrency, in particular, has become very popular among investors, many obtaining profit from the steady fluctuations.
The crypto market already experienced a massive drop in 2024. In the first part of the year, the total market capitalization went down by 7.68%, settling for $2.27 trillion. On March 4, 2024, Bitcoin was trading at $67,279, a decrease of 7.69%. Meanwhile, Ethereum went down by 10.25%, trading at $3,527. The first half of March saw a lot of price fluctuations.
As the federal fund rates go through these changes, alternative investments are expected to see more price swings compared to traditional stocks.
“Investors should limit their exposure to alternative investments during this time of uncertainty,” recommendsprivate equity principal Mark Hauser.
Emerging Trends Should Be Considered
The investment market will likely be affected by financial, economic, and geopolitical influences. Many are now unsure about investing in cryptocurrency due to their volatility, particularly during geopolitical events. Private equity expert Mark Hauser has underlined trends investors should keep on their radar for the long term.
Investments in Longevity Investments Will Become More Popular
The desire for longevity has long since driven the interest of humans, and various methodologies are being developed to increase their lifespan. Potions and health regimens have been the main focus for thousands of years, but countless medical breakthroughs have taken wind over the past few decades. The increased interest in longevity treatment research has captured the interest of numerous investors.
For instance, targeted cancer treatments are expected to change how medical professionals address this condition. A newly researched treatment option is “smart chemotherapy,” which should see tremendous growth as 2050 gets closer. Newly developed obesity medication could also bring numerous benefits and interest, with the emergence of AI technology improving the pharmaceutical process.
Sustainability Efforts Will Have Significant Impact
Decarbonization has taken a stronghold in the world ever since the Paris Climate Accords passed in 2015. From that moment, companies have focused on implementing sustainability strategies and making various changes to their infrastructure. Even the crypto market is changing in this regard, opting for a more sustainable approach. Due to their energy consumption, cryptocurrencies have a lot of impact on our climate. So, nowadays, there’s a strong focus on decarbonizing the crypto landscape.
While some companies could benefit from these changes and find opportunities in unexpected places, others may face potential challenges. To prevent this from causing losses,Mark Hauser says investment opportunities may be focused on revising strategieswith a solid plan in mind. Due diligence is recommended, even for investment opportunities that seem extremely promising.
Investors Should Consider Risk Tolerance and Long-Term Goals!
With 2024 only beginning to unfold, technological advancements and changing economic conditions will continue influencing the investment market. With the elections playing a significant role in how the market evolves and geopolitical events affecting cryptocurrencies and other markets, it is natural for investors to become wary when planning their next move. As there is no clear path ahead of us yet, private equity principal Mark Hauser advises that investors consider their risk tolerance and long-term goals before making any important financial decision.
About Mark Hauser: Mark Hauser is a fund manager and private equity investor with more than 35 years of experience in finding profitable investment opportunities.
Darren Mcpherson
Author
Darren Mcpherson brings over 9 years of experience in politics, business, investing, and banking to his writing. He holds degrees in Economics from Harvard University and Political Science from Stanford University, with certifications in Financial Management.
Renowned for his insightful analyses and strategic awareness, Darren has contributed to reputable publications and served in advisory roles for influential entities.
Outside the boardroom, Darren enjoys playing chess, collecting rare books, attending technology conferences, and mentoring young professionals.
His dedication to excellence and understanding of global finance and governance make him a trusted and authoritative voice in his field.
Dexter Cooke
Reviewer
Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide.
He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina.
Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations.
As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all.
Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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