You don’t need me to tell you that we are in the midst of another presidential election year. The leading news stories over the last few weeks have been filled with major developments for both parties and their respective candidates. From the assassination attempt on Donald Trump, and the Republican National Convention, to President Joe Biden dropping out of the presidential election race, significant election race happenings have dominated the headlines.
Many of us have an established ideology that informs our perspective on who we want to win the election. Because of our strong conviction to our ideology, it is natural to think that if our preferred candidate wins, our country will head in a better direction.
This line of thinking can lead us to believe that the United States will be in a better economic condition if our candidate wins, which will result in a stronger performing stock market. However, the following analysis shows that over the past nearly 100 years, there has been no predictable pattern between which party candidate wins the election and the performance of the stock market.
So, when you are tempted to make an investment decision based on your expectation of the election results, remember that whoever wins the election will likely have little impact on how the stock market performs over the next four years. The advisory team at Master’s continues to emphasize that investment decisions should be based primarily on your own circumstances with only minimal consideration of the external environment. As always, the team at Master’s is ready to help when you’re contemplating a significant financial decision. Please don’t hesitate to contact us!
