As election season approaches, many clients find themselves on edge, wondering how the political landscape will impact their portfolios. Historically, election years have been characterized by uncertainty and volatility in the financial markets. To that end, we thought it helpful to provide a summary of stock market performance in election years dating back to 1928.
Past performance does not guarantee future results. Indices are unmanaged and not available for direct investment. S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks. Data Source: Hartford Funds and Morningstar, 3/24.
As you can see, the market seems to love elections. But markets will often react to political rhetoric, polls, and policy proposals, and the resulting volatility can lead to knee-jerk reactions driven by emotion rather than fundamentals.
We believe it is crucial to have a disciplined investment process and to focus on long-term goals in the context of your holistic financial plan (we call that a Live Well Plan), especially in election years. Please reach out with your questions or concerns this election season – we are here for you!
About the Author
Matthew (Matty) Kerns serves as a Partner and Wealth Manager for The Price Group of Steward Partners. He resides in Houston with his wife, Sarah, their two children. Matty studied at Rice University for his CERTIFIED FINANCIAL PLANNER™ certification after receiving his undergraduate degree from the University of Texas at Austin. Matty has a passion for helping families make high quality, common sense decisions regarding their wealth and their legacy – he firmly believes everyone needs a wealth coach!
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