As I’m sure we all know by now, 2024 is a presidential election year. As the election season heats up, it does what everything does as it heats up...it starts to smell. This one could be an all-time stinker.
This election promises to be one of the most contentious and polarizing in history. The political ads, emails, robocalls and texts are headed our way, unfortunately, very soon.
There is some good news, however. Stocks have trended upward over the last century regardless of who wins the election.¹ This isn’t to say that the president doesn’t have some effect on market returns, but it is just one of many factors which impact how stocks behave over a given period.
Becoming a shareholder is an investment in a company, and companies continue to serve their customers and grow their businesses regardless of who is in the Oval Office.
So, as the rhetoric builds and the fear flows over the airwaves, phone lines (do we even have those, anymore?) and internet, try not to worry too much about the market and be thankful this doesn't happen every year.
1. Dimensional.com, January, 2024. "The Market and US Presidential Elections."