With the election quickly approaching, we have been fielding calls, questions, and opinions on the potential returns of the market depending on who wins the presidential office in November. The main question boils down to: does a President make a market?
When considering this question, it’s important to remember that over the past 92 years, the S&P 500 has seen positive performance 73% of the time throughout numerous election cycles. Below is the S&P 500 index performance by election cycle.
Interestingly, the data indicates that a split government is more of a positive signal for the market than the party of the president. See below.
Sometimes it can be difficult to stay invested in periods of political, geopolitical, and economic unknowns. That said, the below chart is very telling in our opinion. Time in the market is better than timing the market!
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