It’s an Election Year! Stocks Have to Behave Differently

2016 USA presidential election poster. EPS 10
01 Jun 2016

Well, the reality is that stocks don’t just perform differently, they perform better*. Since 1928, the S&P 500 has had an average total return of slightly better than +11% in all election years.  There have been 22 elections since the S&P 500 index began; 82% of the time the index was positive. When a Republican was elected, the return was +15.6%. When a Democrat was elected, it was +7.6%.

Elected

Election Results

As much as the media wants us to think that an election year will cause havoc, the fact is it doesn’t the majority of the time.  Like most distractions (fiscal cliff, debt downgrade, Y2K, ISIS), the reality is that the markets typically do what they have done for the past 70 years. You just have to be in the market to participate in the market returns.

 

Good Luck!

Jeff

 

*Past performance does not guarantee future results. For illustrative purposes only and not indicative of any actual investment. The S&P 500 is an unmanaged index used to measure large-cap U.S. market performance. Investors cannot invest directly into an index. Index returns do not reflect fees, expenses, or sales charges. These returns were a result of market conditions that may not be repeated in the future.
Data Source: Morningstar/Ibbotson Associates.
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Jeffrey Johnston

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.