SEM Trader's Blog logo

A Behavioral Approach to Investing

Using Scientifically Engineered Models

Elections & the Markets, Part 3

As we enter the final weekend before the election, we are anxiously awaiting to see what happens next. The past two weeks in this space we’ve looked at the possible outcome of a “wave election” followed by the long-term investment impact (or lack thereof) of which party wins the White House.

 

This week we look at the performance of the markets in an election year based on the outcome of the election. Unfortunately when we look at the chart we can see if Hillary Clinton wins (a Democrat & the incumbent party) the market celebrate the continuation of the “status-quo” or lament what a White House filled by a Democrat may mean for business growth. 

 

If Donald Trump wins (a Republican defeating the incumbent party) the market may celebrate a “pro-business” party winning the White House, or worry about the changes to come.

 

About the only thing we can see is the market is likely to be volatile as it sorts the election out.

Regardless of who wins or how the market reacts, we will be ready.

 

Author image
New Kent, VA
Jeff joined SEM in October 1998. Outside of SEM, Jeff is part of the worship team at LifePointe Community Church where he plays the keyboard and bass guitar. He also leads a small group Bible study.