Navigating Elections and Market Volatility: A Perspective for Investors

Matthew Barker |

Hey there, folks. It's time for a little chat about elections and their impact on the markets. Now, before you start fretting, let me assure you, I'm not here to dive into the political arena. Instead, I want to shed some light on how elections can influence market behavior, or sometimes, how they don't.

Let's take a stroll down memory lane, all the way back to 1936. If you sift through the data, you'll notice something interesting - regardless of whether a Democrat or a Republican clinched the White House, the markets have consistently trended upwards. And by "upwards," I mean, well, you guessed it - in the right direction.

But hold on a second. Before we get ahead of ourselves, there's a little something called the primaries. Yep, those often tumultuous months leading up to the main event, typically spanning from now until May, or sometimes even into June depending on where you are. Historically, the primary season has been a bit of a rollercoaster ride for the markets.

So, as we stand on the precipice of what's to come, it's natural to feel a tad jittery about market fluctuations during this period. However, here's the nugget of wisdom I want you to grasp - in the 12 months following a primary election, the markets have, on average, surged upwards by a little over 10%. Impressive, right?

Now, here's the kicker: it doesn't really matter who emerges victorious in the end. What truly matters is staying invested. One of the cardinal sins we often witness during election years is investors hastily shuffling their funds around - dumping stocks for bonds or parking everything in cash. Spoiler alert: that's usually not the best move.

As we've said time and time again, it's not about timing the market; it's about time in the market. Sure, a tweak in your investment allocation may be warranted based on market conditions and your personal financial landscape, but it doesn't mean you have to hit the panic button and bail out entirely.

So, as you mull over the upcoming election, perhaps you've already pondered your voting preferences and considered how they might intersect with your investment portfolio. If you find yourself feeling a bit uneasy about the potential impacts, fret not. Give us a ring, shoot us an email - we're here to lend an ear and help craft a plan that aligns with your goals.

Remember, folks, we're in this together. If there's anything on your mind or any way we can assist you, don't hesitate to reach out. Take care, and happy investing!