How much impact does the US President have on US Stocks?

How much impact does the US President have on US Stocks?

MARKET INSIGHTS: HOW MUCH INFLUENCE DOES THE US PRESIDENT HAVE ON US STOCKS?

In anticipation of tonight’s Presidential Debate there might be questions about how financial markets respond during elections. But the outcome of an election is only one of many inputs to the market. This exhibit examines market data for nearly 100 years of US presidential terms and shows a consistent upward march for US equities regardless of who’s in the Oval Office. This is an important lesson on the benefits of a long-term investment approach.

Growth of $1 1926-2023

This material is in relation to the US market and contains analysis specific to the US. In US dollars. Stock returns are represented by the S&P 500 Index. Source: S&P data © 2024 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Data presented in the growth of $1 chart is hypothetical and assume reinvestment of income and no transaction costs or taxes.

The chart is for illustrative purposes only and is not indicative of any investment. Growth of wealth for the full sample from January 1, 1926, through December 31, 2023. Growth of wealth for each presidential term starts on the inauguration month of each president up to but not including the inauguration month of a successor. Growth of wealth for Calvin Coolidge's term starts on January 1, 1926, based on the inception date of the S&P 500 Index.

Risks : Buying Investments can involve risk. The value of your Investments and the income from them can go down as well as up and is not guaranteed at anytime. You may not get back the full amount you invested. Information on past performance is not a reliable indicator for future performance.

This information is intended for educational purposes and should not be considered a recommendation to buy or sell a particular security. The views expressed here are subject to change without notice and we can’t accept any liability for any loss arising directly or indirectly from any use of it.

Gurdev Aujla

I'm Gurdev Aujla, an Independent Financial Adviser at Coleridge Capital. I specialize in providing a holistic approach to financial planning, focusing on retirement, wealth management, financial protection, estate planning, and setting up wills and trusts. My goal is to help individuals and families secure their financial future with tailored solutions.

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