Election Stock Market Trends

According to a 2019 dimensional funds report the market has been positive in 19 of the last 23 election years spanning 1928 2016.

Election stock market trends. The current contentious election cycle in the u s. But there are some clear exceptions. S p 500 annual stock market returns during election years year return candidates 1928 43 6 hoover vs.

Stock indexes to records this week. Smith 1932 8 2 roosevelt vs. The s p 500 fell more than 5 in premarket trading.

Labor market and an improving housing sector have helped alleviate some concerns and propelled all three major u s. Landon 1940 9 8 roosevelt vs. The market clearly likes what s been going on as it has gone nearly straight up except for a pause between october 2018 and june 2019 and of course when the pandemic began.

When the same president is re elected or if one party retains control of the white house returns were slightly higher at 6 5 percent. I d expect the market to initially shoot higher especially if the democrats were to take control of the senate. The first 2 years of a presidential term have been associated with below average returns while the last 2 years have been well above average.

Signs of a strong u s. Hoover 1936 33 9 roosevelt vs. Many investors wonder whether if the 2020 election is not settled.

Has caused people all over the world to wonder what lies ahead for markets. When a new party comes into power the analysts found that stock market gains averaged 5 percent. The night of the 2016 election as more states began reporting and a trump victory became increasingly likely stock market futures sank rapidly.