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f you haven’t yet, you’ll see it in the news headlines soon; Tales of tumultuous future market performance based on which presidential candidate wins the 2024 election. But how serious can you take these forecasts, really?READ THE ARTICLE
Check your bias: It likely comes down to your personal political beliefs. A Nationwide survey reveals that a significant percentage of investors believe a recession is imminent if the political party they least align with gains more power in federal elections. Here, author Mark Newfield analyzes historical market patterns and finds that performance varies throughout different years of a presidential term (regardless of who is president). Year three is often the best for S&P performance, while years two and four show more volatility.
The donkey and the elephant: Democratic regimes show better long-term market performance historically, but as with all data, the past doesn’t dictate the future. Ultimately, it’s no secret that markets are good at being unpredictable, so basing your investment strategies on the party in power is ineffective over the long term.
You might feel apprehensive of the economic environment when national leadership positions are in flux, but don’t let these emotions deter you from following the personalized investment strategy that is designed to protect and grow your money.