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…
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.