How the Stock Market is Affected by U.S. Elections: What Investors Should Know

The U.S. elections are always an opportunity to make history in the country. What some people don’t know is that the elections can have a major impact on laws, policy, foreign relations, and the stock market. This shows that elections go beyond the man and the party, but the best interest of the nation.The Stock Market vs ElectionsOver the years, U.S. Bank analysts have taken time to study market data of the past years, especially over the last 90 years. By doing this, they have been able to identify repeated patterns that have occurred throughout the election years. Their predictions may be based on merely historical data, however, some of these patterns tend to repeat themselves more often than others. In a market data review of the S&P 500 in the 1930s, analysts found out that on average, both stock and bonds market dropped in their performance from the year leading up to the presidential elections, than other times. The results of the presidential elections also determine how...

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