Election Years Stock Market

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.

Election years stock market. In the lead up to the 2020 election he consistently claimed that if he were to lose stocks. Cashing out of the stock market presidential races make wall street nervous so investors often cash out as election day approaches. For years trump has taken credit for the stock market s performance at least when it s up.

Here are three key takeaways that can be drawn from the market s past performance during election years. Landon 1940 9 8 roosevelt vs. Historical returns of stocks and bonds during election years blackrock as of market close on august 17 th 2020 the s p 500 was up 4 68 year to date total return and bloomberg barclays us.

A stock market crash cleaved the value of the s p 500 nearly in half between january 1973 and october 1974 accompanied by double digit inflation and a 16 month recession that began in the fall of. President trump is now seeking a second term and the s p has gained an average of 6 6. S p 500 annual stock market returns during election years year return candidates 1928 43 6 hoover vs.

So always focus first on the economy and corporate earnings. 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. 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.

Historically inflows to money market funds which invest. But there are some clear exceptions. Willkie 1944 19 7 roosevelt vs.

It is a normal trend for the stock market to rise during an election year. History suggests that us stock market returns are correlated with the presidential election cycle. 1 the market tends to perform well during an election while this may come as somewhat of a surprise the stock market actually tends to perform quite well during an election year with the market having been positive overall in 19 of the past 23 election years.