What does the presidential election mean for my investment portfolio?

Updated: Jan 13

Many clients are asking what the presidential election means to their investment portfolio. While the headlines about the upcoming election can spark uncertainty for the future of the economy and markets, the following video from Dimensional Fund Advisors can provide perspective for investors.


What does history tell us about elections and the market?


The historical record indicates how financial markets have responded for nearly 100 years across administrations from both parties, as illustrated in this chart from Dimensional Fund Advisors. (Click chart for more details & to link to the interactive graph detailing each the market performance history of each administration or view full report below).


GROWTH OF $100

FAMA/FRENCH TOTAL US MARKET RESEARCH INDEX

March 4, 1929-June 30, 2020


In summary, there are a variety of factors which impact the performance of the stock market, including presidential elections. However, we do not recommend making a predication about how the presidential election may turn out and using that information to adjust your portfolio. If we know anything about the stock market, it can constantly surprise investors and the Covid-19 crisis we have all faced this year is a prime example.


How Much Impact Does the President Have
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See full report here:




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