Election Years And Stock Market

It is a normal trend for the stock market to rise during an election year.

Election years and stock market. S p 500 annual stock market returns during election years year return candidates 1928 43 6 hoover vs. The night of the 2016 election as more states began reporting and a trump victory became increasingly likely stock market futures sank rapidly. Willkie 1944 19 7 roosevelt vs.

As if investors didn t have enough to think about 2020 will be a general election year in the united states. Smith 1932 8 2 roosevelt vs. So always focus first on the economy and corporate earnings.

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. Here are three key takeaways that can be drawn from the market s past performance during election years. Market performance in election years the good news for investors is that historically the market has performed well in election years with the s p 500 ending up in positive territory 82 of the time.

One question that always seems to come up in investing circles every four years is the relationship between an election year and the stock market. Since 1952 the dow jones industrial average has climbed 10 1 on average during election years when a sitting president has run for reelection according to the stock trader s almanac which is. But there are some clear exceptions.

All election years 11 25 average return do markets rise during an election year. Between 1950 and 2019 the stock market experienced gains in 73 of calendar years. Regardless of who is running election years can have a big impact on the market s performance and given that this.

Landon 1940 9 8 roosevelt vs. Historically general election years have been highlighted by volatility in the stock market. A general election is one in which the country votes for president as well as congressional representatives and senators.