Election Stock Market Volatility

This is logical as the markets hate uncertainty.

Election stock market volatility. Measured by daily returns of the s p 500 1928 1989 and the vix index 1990 present. The bulls bears are duking it out at crucial market levels. Historically volatility in the stock market is elevated in the months leading up to an election.

Since 1950 september has tended to be the stock market s worst month of the year with an average loss of 57 for the s p 500. Get information on the election risks history of election volatility and what industries may benefit. Historical data suggests that the outcome of the election is not meaningful for stock market performance but some trends like potential volatility are still worth noting for long term investors.

Stock investors can take refuge from election related volatility retail and housing are seen as offering protection from market swings during presidential campaign target is a retail stock that has. That s why it s important to. Market volatility has a track record of rising during election season and i anticipate this contentious election will be no exception.

For investors it s important to step back put. Stock market volatility is completely normal. For volatility professionals who get it right the american presidential election could go down in history as the short trade of a lifetime.

1 bloomberg factset bofa us equity quant strategy. Among the short sellers is cem karsan founder of aegea. A lot of the volatility seems to be caused by technical.

The election outcome and second third wave of the coronavirus pandemic are likely to dominate headlines in november causing more short term turbulence in the stock market. History shows that volatility is a classic hallmark of presidential election seasons.