Chart: Why to look past election-year volatility
- Chart on the Go
Election years often bring volatility and with that comes uncertainty. But our latest chart gives a snapshot of why investors should focus on long-term goals.
It can be easy to get caught up in election-year predictions, but investors tend to benefit by taking a long-term view: staying focused on their goals and looking past election-year volatility.
Since 1932, the average four-year forward annualized return of the S&P 500 after an election has been 9.3%, and only three presidential elections out of 22 resulted in a negative forward result.
Market returns are determined by many variables, and the trajectory of any given stock is determined by a complex series of inputs. Rigorous bottom-up analysis and active portfolio management can help uncover the companies that may thrive.