In just a few short weeks, Americans will head to the polls to elect the next President of the United States.
While the outcome is unknown, one thing is for certain: There will be a steady stream of opinions from pundits and prognosticators about how the election will impact the stock market. As explained in the below graph from Dimensional, investors would be well-served to avoid the temptation to make significant changes to a long-term investment plan based on upon these sorts of predictions.
While the outcome is unknown, one thing is for certain: There will be a steady stream of opinions from pundits and prognosticators about how the election will impact the stock market. As explained in the below graph from Dimensional, investors would be well-served to avoid the temptation to make significant changes to a long-term investment plan based on upon these sorts of predictions.
Additionally, this short 4 minute video from Vanguard aids investors in shifting their focus from the short term impact of the election to focusing on the long term. Decades of historical data tell us that presidential elections typically don't have a long-term effect on market performance.
This data does not suggest an obvious pattern of long-term stock market performance based upon which party holds the Oval Office. The key takeaway here is that over the long run, the market has provided substantial returns regardless of who controlled the executive branch.
For more resources on this topic, please contact us.
For more resources on this topic, please contact us.
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