Historically, it has not mattered.
“It’s natural for investors to look for a connection between who wins the White House and which way stocks will go. But regardless of who wins, nearly a century of returns shows that stocks have trended upward.” 1
The same principles we have focused on when building our investing models apply, you cannot consistently out-predict the market. It is not a winning game to try.
“Shareholders are investing in companies, not a political party. And companies focus on serving their customers and helping their businesses grow, regardless of who is in the White House.” 2
There are plenty of things to lose sleep over in the world in 2024, but the impacts of the election on your portfolio is not one of them.
Vanguard 3
References
1 “The Market and US Presidential Elections.” Dimensional, 2024.
2 “Presidential Elections: What Do They Mean for Markets?” 28 Oct. 2020. https://www.dimensional.com/us-en/insights/presidential-elections-what-do-they-mean-for-markets
3 “Presidential Elections Matter but Not so Much When It Comes to Your Investments.” Vanguard, 26 Oct. 2023, investor.vanguard.com/investor-resources-education/article/presidential-elections-matter-but-not-so-much-when-it-comes-to-your-investments.
