Broker Check

Stock Market Returns During a Re-Election Year

| June 24, 2020
Share |

Presidential election years always lead to heightened anxiety among investors as they weigh the potential pros and cons of a red or blue candidate being elected. This year is no different, especially during a global pandemic and national unrest on race issues.

With this amount of uncertainty sometimes it is helpful to lean on history to see what has happened in the past to determine where we might be heading. The chart below, compiled by LPL research, shows the stock market returns during all presidential re-election years dating back to 1950. From the chart you can see that the average return during those years were 11.70%, with the market up 100% of the time!

Will this year be the same?? Well, we have some work to do at these current levels. But if the past is prelude, the market should try to climb higher into the end of the year, barring another set back in the reopening of the global economy.

 

Mark Twain once said that “history never repeats itself, but it rhymes.” This could never be truer than with the stock market. When the market is due for a pullback or a shot upward, it usually happens, but the reasons for it happening are always different.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Share |