August 21, 2020Individual Investment Management
Stocks & Elections
It's often a non-event!
As elections approach, our knee-jerk reaction is to become much more conservative by nature. On the surface this makes good sense, but how do markets typically perform before and after elections? A look at some data is warranted to analyze. With regard to market returns both before and after elections, most observable returns fall between +5% and +30% returns (as defined by the S&P500 Index) by the 12th month after election day.
Markets are most often positive after elections!
Based on this data set, you can see that most elections only affect stocks in the short term and are positive in the vast majority of cases when viewed over the long term. Further evidence that keeping your eye on the long term is the best advice for those with at least 12-24 months of patience!
The wise investor buys his or her investments around their goals - not an election!
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Advanced Capital Group (ACG) is a Registered Investment Advisor (RIA) domiciled in the state of Minnesota and subject to the Investment Advisor Act of 1940. This information is not a recommendation to sell, hold or buy any security. All investments carry risk of loss and may lose value and past performance is not a guarantee of future results. Investment products are not FDIC insured, and FDIC and SIPC insurance coverage do not protect investors from market losses due to fluctuation in market values. As an RIA, ACG does not provide tax advice or legal services. This material is for educational purposes only and does not constitute an investment advisory agreement. This document is the property of Advanced Capital Group, Inc. CRD #109673.