Just the other day, a close friend of mine was concerned about investing in the US stock market.

You see, the US Presidential election is coming in less than two months…

Source: Another of my close friend, Google

And he wanted to know if his US stock portfolio would be affected depending on who wins in the election — Donald Trump or Joe Biden.

While I certainly can’t predict what will happen, we can take some clues from history.

So, sit back and…

Source: Giphy

let’s see where this takes us.

Past US Presidential Elections and the Stock Market

Studies show that in the year where a Republican is elected, the stock market’s total returns (which includes dividends) are above average while in the following year, returns are below average. The stock market here refers to the S&P 500 index.