Investments Blog

What History Tells Us About US Presidential Elections and the Market

Written by Jacob King | Oct 7, 2020 5:00:00 AM

 

Growth of $100
Fama/French Total US Market Research
March 4, 1929 - June 30, 2020

  • Shareholders are investing in companies, not a political party. And companies focus on serving their customers and growing their businesses, regardless of who is in the White House.
  • US presidents may have an impact on market returns, but so do hundreds, if not thousands, of other factors—the actions of foreign leaders, a global pandemic, interest rate changes, rising and falling oil prices, and technological advances, just to name a few.

Stocks have rewarded disciplined investors for decades, through Democratic and Republican presidencies. It’s an important lesson on the benefits of a long-term investment approach.