Chart of the Month: How U.S. Stocks Fared in Past Election Cycles

Sources: S&P Global; The National Bureau of Economic Research

Market Observations

Investors should prepare for rising market volatility as election day approaches. While polls have shifted from the expectation of the contested election to the speculation of a Democratic sweep, the outcome may not be known for days or even weeks following November 3rd. While this election may bring heightened uncertainty, investors should remember that the stock market has generally risen over time, despite some interim volatility. Election year jitters should not deter investors from maintaining a long-term perspective as historically, the outcome of U.S. presidential elections have not greatly impacted investment returns. As the chart depicts, the S&P 500 Index has powered through every presidential election, regardless of whether a Democrat or Republican won the White House. Politics can bring out strong emotions and biases, but investors are wise to tune out the noise and continue to focus on long-term goals. Ultimately, staying invested and maintaining a diversified portfolio is more important to future investment success.

Note: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Opinions expressed are those of the author, and do not necessarily represent the opinions of Cammack Retirement Group.

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