Election Year Stock Market Results

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.

Election year stock market results. 7 2000 and the end. S p 500 annual stock market returns during election years year return candidates. But external events may sometimes be correlated to stock returns for instance the 4 year election cycle in the us.

Sure the outcome of the election could cause the stock market to dip in the short term especially if the results are disputed. Election year stock market returns here are the market results for the s p 500 for every election year since 1928. Data below is from dimensional s matrix book 2019.

Election day is a year away and stocks are poised to keep rising over the next 12 months with an incumbent in office that is if history is any indication. I have studied the election cycle and its potential impact on the stock market for many years looking back to the 1850s. Stock market performance during an election year it should be of no surprise that the markets performed better during a year when an incumbent president is elected compared to a new administration.

After election night on nov. In the 23 four year presidential election cycles beginning in 1928 through this year the market failed to produce a gain only five times in the third year of the cycle 1931 1939 1947 2011 and 2015 which on average outperformed the other three years by a wide margin. Stock market performance thus far in 2019 has coincided with the presidential election cycle pattern.

Since 1952 the dow jones. The stock market reaction this year especially the election isn t the only market. Lawmakers may decide to focus on initiatives that produce instant economic results.

But historically the stock market has rewarded those who stay. 1 2020 at 9 31 p m. Between election day on nov.