Presidential Election Effect On Stock Market

2020 has been filled with surprises and uncertainty and is likely to continue as we approach the november u s.

Presidential election effect on stock market. It doesn t matter where your political alignments or expectations lie we are only interested in how an event changes or does not change our investment strategies and where we see potential value in the stock market. That said there are some general rules of thumb for traders to keep in. According to dan clifton of strategas research partners history.

With the assistance of data from the last ten us presidential elections history reveals the stock market more specifically the us benchmark dow jones index typically rises on average before. After an election stock market returns tend to be slightly lower for the following year while bonds tend to outperform slightly after the election. The vast majority of investors 93 believe the presidential race will affect the stock market according to a recent survey from hartford funds an asset manager.

Many investors are worried about the election s effect on the stock market most often through a biden victory leading to actual or feared measures that would clobber corporations. Surely the question goes and note that it is not really a question if candidate x wins the market will tank for the following reasons. How presidential elections affect the stock market every four years politics and finance converge as americans elect a president and investors try to figure out what the outcome means for their.

Moreover 84 said they expect. It doesn t seem to make much difference which party takes office but it does matter whether control of the white house changes hands. Although the stock market is not the economy historically both have played major roles in the outcome of presidential elections.

Although the economy has historically performed better under a democratic.