With a presidential election just around the corner, many investors are looking for clues as to which way stocks may go. The following articles by Dimensional provide a historical perspective on presidential elections and the stock market. The results may surprise you and should reinforce the benefits of taking a long-term approach when it comes to investing. ~ Craig Ascari
How Much Impact Does the President Have on Stocks?
The anticipation building up to elections often brings with it questions about how financial markets will respond. But the outcome of an election is only one of many inputs to the market. Our interactive exhibit examines market and economic data for nearly 100 years of US presidential terms and shows a consistent upward march for US equities regardless of the administration in place. This is an important lesson on the benefits of a long-term investment approach.
What History Tells Us About US Presidential Elections and the Market
It’s natural for investors to look for a connection between who wins the White House and which way stocks will go. But as nearly a century of returns shows, stocks have trended upward across administrations from both parties.
Source and Author: Dimensional