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

Jeff has over 30 years of experience in the investment industry. He currently holds his FINRA Serices 6, 63, 66, 7, 24 & 51 licenses with LPL Financial as well as his health and life insurance licenses.