As many of us have heard President Biden has announced he will be stepping aside in running for the US Presidential race. This has made headlines around the globe and many investors have been asking what affect will this have on the stock markets and have similar events affected the markets in the past?
As shown in the chart below the S&P 500 has only posted negative returns during two presidencies: Richard Nixon and George W. Bush. Despite who is in office, the S&P 500 has actually consistently grown in value over the long run as shown below.
Last two election periods and how the markets reacted
According to these charts, it appears that historically markets have been positive under all six government compositions
The chart below depicts how essential it is to REMAIN INVESTED and how detrimental it can possibly be to miss days in the market
Charts provided by Fidelity Investments
This document was prepared by the Investment Products & Platforms Team. The opinions expressed in this document do not necessarily reflect the opinions of iA Private Wealth Inc. The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Contents copyright by the publishers. The information contained herein may not apply to all types of investors.
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