Why Are Presidential Election Years Good for Investors?

Presidential election years have been proven to be good for investors for multiple different reasons. Despite the increased volatility present during the election years, historical trends have shown positive tendencies in the stock market. For instance, the third year of a president's term (which coincides with the pre-election year) tends to be the strongest for stock market returns. However, it's essential to remember that historical trends don't guarantee future performance. Additionally, higher uncertainty in the market may present more opportunities for investors to capitalize on the fluctuations. 

The graph below from Hartford Funds shows positive returns in the majority of the presidential election years, as well as higher gain rates. 

Schedule a meeting with us to find out how we can help you make the most of the presidential election year investing!