Stock Market Every Election Year

This strategy kept investor 1 out of the market from january 1 of the inaugural year through september 30 of the second year during the test period.

Stock market every election year. 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. 1 2020 at 3 02 p m. 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.

Regardless of who is running election years can have a big impact on the market s performance and given that this year s election is taking place in the midst of a global pandemic this is all the more true. 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. Hoover 1936 33 9 roosevelt vs.

Learn more stay ahead of election. 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. Smith 1932 8 2 roosevelt vs.

Looking at the performance of the s p 500 index for each general election year since 1928 the market has only had a negative return three times 13. I have studied the election cycle and its potential impact on the stock market for many years looking back to the 1850s. Since 1952 the dow jones.

Willkie 1944 19 7 roosevelt vs. 1 2020 at 9 31 p m. S p 500 annual stock market returns during election years year return candidates 1928 43 6 hoover vs.

But external events may sometimes be correlated to stock returns for instance the 4 year election cycle in the us. However the historical average annual return for the s p 500 index since 1957 the year in which the index adopted 500 stocks is 7 96. Election year stock market stay ahead of election market swings as the market fluctuates with every new poll and rumor jj kinahan is here with daily market updates and insights to help you throughout election volatility.