Election Year Stock Market History

His research also shows how stock market performance leading up to an election has also been a major indicator of the outcome.

Election year stock market history. Each series begins in the month of election and runs to the election of the next president. Stock market performance by president from election date this interactive chart shows the running percentage gain in the dow jones industrial average by presidential term. The performance of the s p 500 in the three months before votes are.

Of the four years in a presidential cycle the first year performance of the stock market on average is the worst. Only presidents who were elected as opposed to vps who stepped in are shown. The first year of a presidency is characterized by relatively weak performance in the stock market.

7 2000 and the end. But there are some clear exceptions. S p 500 annual stock market returns during election years.

The midterm election year the second year also sees historically below average performance. So always focus first on the economy and corporate earnings. The stock market doesn t react well to uncertainty so it s not surprising that stocks fell in 2000 when no clear winner emerged from the election.

History suggests that us stock market returns are correlated with the presidential election cycle. It is a normal trend for the stock market to rise during an election year. Between election day on nov.

The s p 500 has made gains in 78 of election years since world war ii. President trump is now seeking a second term and the s p has gained an average of 6 6. Since 1952 the dow jones industrial average has climbed 10 1 on average during election years when a sitting president has run for reelection according to the stock trader s almanac which is.