The Markets and U.S. Elections- Are They Correlated?

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

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. This blog was prepared by Alison Cannell, for the benefit of Alison Cannell, Financial Advisor with Cannell Wealth Management Inc., a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this blog comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability.

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