Us Election Results Effect On Stock Market

Data on the standard poor s stock index is available as far back as the 1928 election in which herbert hoover beat al smith.

Us election results effect on stock market. Stock swings will calm down after election day 4 nov 2020 09 04am ist the cboe volatility index wall street s fear gauge declined as the s p 500 climbed nearly 2 in part on anticipation of a clear presidential election outcome. And history shows us that market volatility is higher pre election. When a new party comes into power the analysts found that stock market gains averaged 5 percent.

Thus it can be surmised that an election s impact on stock prices would inevitably fall with a general trend of strength but expecting an increase in volatility may be the more likely outcome. The effect of the election on stock prices is easy to measure. Moreover 84 said they expect.

Specifically stock market returns average around 6 5 if an incumbent party maintains hold of the presidency or if the president is reelected. From 1853 2015 the average annual market return was 10 5 with a republican in office and 10 7 with a democrat says egan. In a nutshell the stock market typically goes up during an election year and there have been better results in years when a republican was elected.

However there are many variables such as who. After an election stock market returns tend to be slightly lower for the following year while bonds tend to outperform slightly after the election. If the party changes markets average gains of.

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.