??????? Why you should invest no matter who wins the election

??Market Strategy Flash

I just voted, and I encourage you to do the same! My official mail-in ballot for the general election arrived just the other day. According to the US Elections Project, the 2024 presidential election is now on track to eclipse the 67% voter turnout rate of the 2020 election, which was the highest participation since 1900!

With less than two weeks to go, intensifying voter and investor anxiety is understandable. To calm everybody down, I thought I’d share my answer to a common question I get from advisors and clients each election cycle: “Which political party has enjoyed the best stock market returns?”

This analysis is far from exhaustive, but the results depend on how you measure them. From the 2017 to 2021 inauguration, Trump presided over a 70% gain in stock prices. From the 2020 election day till now, Biden has reigned over a 74% increase in the stock market. Either way, those are robust returns (see the chart below)!

In my opinion, politicians get too much credit when things go right, and they get too much blame when things go wrong. True, politics can cause near-term bouts of volatility and drawdowns in stocks. However, earnings, inflation, interest rates and valuations are among the more important long-term fundamental drivers of share prices. Think twice before letting your political decisions interfere with your investment decisions!

No matter how you slice it, S&P 500 returns were strong under Trump and Biden

Sources: FRED, WCG, 10/14/24. Notes: NBER = National Bureau of Economic Research. An investment cannot be made in an index. Past performance does not guarantee future results.

Index Definitions

The S&P 500 Index is a capitalization-weighted composite that measures the stock price performance of 500 publicly-listed companies across all the major industries of the U.S. economy.

Disclosures

Important Information

Investment advice offered through WCG Wealth Advisors, LLC, an SEC registered investment advisor. Indices are unmanaged and cannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. Past performance does not guarantee future results.

In general, stock values fluctuate, sometimes widely, in response to activities specific to the companies as well as broad market, economic and political conditions. Stock investing involves risks, including fluctuating prices and loss of principal.

This is for educational / general purposes only, does not constitute investment, tax or legal advice and should not be relied on as such. This is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in making an investment decision for any individual. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The opinions referenced are as of October 15, 2024. These comments should not be construed as recommendations but as an illustration of broader themes.

Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

Publication Date: October 15, 2024

? 2024 The Wealth Consulting Group

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