Elections and the Market

The volatility of the current state of the economy and stock market, in conjunction with 2020 being a presidential election year, has many folks wondering where their portfolio stands if the election goes red or blue?

Of course, what happens to the stock market is not as simple as accurately predicting what happens on November 3rd.  In fact, who controls the executive branch of the United States government is not a consistent predictor of market trends at all.  The winner of a presidential race is only one of countless factors that influence the markets.

We really like this two-and-a-half minute video because it demonstrates with historical data that the stock market doesn’t really have a preference for which political party holds the executive office (or congress for that matter!)  In fact, the market appears to be quite random despite which party holds the presidency.  One thing that this short video shows is that regardless of politics, over time the market continues to go up, and that’s what matters most to your portfolio!

Please let us know if you have any thoughts or questions!