Dennis Zaderaka

7 Facts About Markets in a Presidential Election Year

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FACT ONE:
Past performance does not predict future results. That is, what happened in markets the last time a party was in the White House may not happen in the future.

FACT TWO:
Technology innovations, interest rates, and business profitability may have a greater influence on the market and the U.S. economy than presidential election results.

FACT THREE:
The S&P 500 has been positive in 16 out of 23 presidential election years since 1928.

FACT FOUR:
Since 1952, the Dow has increased an average of 10.1% in election years with a sitting president running for re-election.

FACT FIVE:
When it comes to the stock market and investing, it really doesn’t matter which party wins. Normal variations in market returns eclipse any minor differences from president to president.

FACT SIX:
Long-term investment success depends more on the strength of the U.S. economy than the party in the White House.

FACT SEVEN:
The S&P 500 has an 86.4% success rate at predicting a White House win. Historically, if markets were down in the 3 months leading up to the election, the incumbent often lost.



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