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Stock Market Behavior and Elections

Stock Market Behavior and Elections

January 16, 2020

At Well-Traveled Wealth we believe that the best investment strategies come down to the ability to stick with it. It is tempting to want to react to the ups and downs of the stock market, but ultimately this will yield disastrous results and take you off your intended course. Be patient, and let time work to your advantage. Of course that is easier said than done when the market is reacting to particular events such as an election. 

Increased Market volatility during an election year is nothing new. However, investors will continue to ask "what will happen to the market if X party wins?" Unfortunately, no one can answer that question with any degree of certainty. Our colleagues over at MFS Investment Management have taken a look at how the S&P 500 has performed in every election year from 1928-2016. Click on the link below to see what they found. The data may surprise you. 

Market Performance During Election Years