Gearing Up For The Election

With the presidential election less than a month away, we know what many of you are thinking. “What does that mean for the stock market?” Historically the S&P 500 has generally risen in election years, especially when there's a split control of Congress and the White House. Election years also typically bring increased market volatility, and 2024 is expected to be especially unpredictable due to heightened geopolitical tensions and polarizing political visions. However, this upward trend is largely driven by the long-term growth of the economy, rather than just the election outcome.

 Key Takeaways for Investors:

• Regardless of the outcome, election years often bring equity-index gains and market volatility.

• Avoid making rash investment decisions based on campaign promises. Actual policy changes often deter from campaign trail proposals, making it risky for investors to make investment choices on word alone.

• Business and economic cycles are more influential to market performance than electoral outcomes.

• Markets have historically been nonpartisan, and election outcomes haven't significantly impacted market performance.

It's important to remember that past performance doesn't necessarily guarantee future results, and market volatility can occur regardless of election outcomes.

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