Search
  • Liz Trimble

Election Year Market Volatility



Election years, with their uncertainty and increased emotions, cause anxiety for investors. Certainly, there may be short-term market volatility around elections, but history suggests that over the long-term the economy and markets move higher regardless of election outcomes.

In fact, presidents often receive too much credit for strong economies and markets, as well as too much blame for weak economies and markets. Corporate earnings are the real driver of the market over time. Presidents have less impact on corporate earnings than many perceive.

Most recently, the market fell after the Trump election in 2016. However, it quickly reversed to a strong upsurge over the next few years. Investors that sold out of the market on Trump’s election missed out on several strong years of returns. This has played out many times in history. Looking at the long-term effects of presidential transitions, as the chart below shows, markets have trended higher over the long term regardless of whether a Republican or Democratic president held office.

The key to investment success, as always, is diversification and a long-term investment horizon. It is important for investors to tune out the short-term noise and keep a long-term perspective.


Chart Source: Capital Group

Past performance is not a guarantee of future results. The S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index.

0 views

Grant M. Trimble

RPAG Logo.jpg
Fi360 logo.jpg

Trimble Investment Group

6800 College Boulevard, Suite 630 

Overland Park, Kansas 66211

913-890-8767

Connect with us:

  • LinkedIn Social Icon

Investment advisory services provided through V Wealth Advisors LLC, a registered investment advisor doing business as "Trimble Investment Group."

 

All content on this site is for information purposes only and should not be considered investment advice.  Material presented is believed to be from reliable sources and no representations are made by our firm as to another party’s informational accuracy or completeness. 

 

Neither the firm nor its representatives provide tax or legal advice and nothing herein should be construed as such.  Always consult with your tax advisor or attorney regarding your specific circumstances.

Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.

V Wealth Privacy Policy

Client Relationship Summary

©2019 by Trimble Investment Group. Proudly created with Wix.com