Stock Market During Election Years Graph
Smith 1932 8 2 roosevelt vs.
Stock market during election years graph. 7 2000 and the end. As you ll see july and august are usually great during election years even though they re normally flat. Stock and bond returns during an election year versus the year after according to dan clifton of strategas research partners in the year after the election historically the market s p 500 responds better to a republican victory initially november through february of the following year but a democratic victory ends up outperforming a republican victory by about 7.
The following infographic uses data from fisher investments to show how the s p 500 historically performs during u s. To the stock trader s almanac which is widely used among investors to track historical stock market. I have studied the election cycle and its potential impact on the stock market for many years looking back to the 1850s.
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. The aggregate data is clear here s how the s p 500 does in different years of the presidency. The chart below plot the typical performance of the dow jones industrial index during a presidential election year.
I recently updated this study and took the history all the way back to the very first election in 1789 yes there is stock market history that far back if you splice different series together. 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. The blue chip average has fallen 1 6 during election years when there s an open field.
S p 500 annual stock market returns during election years year return candidates 1928 43 6 hoover vs. Between election day on nov. On february 19 he tweeted about the stock market hitting a record which is correct.
Landon 1940 9 8 roosevelt vs. Hoover 1936 33 9 roosevelt vs. Returns the year after.