2020 U.S. election impacts
Historically, presidential election cycles can influence stock prices over the near-term. COVID-19 infection rates, vaccine developments, policy proposals from President-elect Biden and the makeup of Congress could have implications for the economy, taxation and stock market longer-term. The Ameriprise Investment Research Group provides balanced, strategic insights that can help you put current conditions into perspective within a long-term investment portfolio.
Ways to position your portfolio in Q4 amid the election
Investors should anticipate periods of market volatility leading up to and after the U.S presidential election. Our roadmap from the Ameriprise Investment Research Group provides insights on key election points, longer-term investment themes and portfolio implications to consider based on election results.
Strategic investor insights for presidential election cycles
In an effort to identify discernable market patterns, much attention has been paid over the years to the so-called presidential cycle of average annual stock market returns. Read our summary of historical election-cycle market performance and stock-price volatility. We also highlight trends for the U.S. economy, deficit spending and market performance during various political cycles.
Evaluating Biden's plan for America
Former Vice President Joe Biden's campaign team released several tax and spending proposals. Together, they supply a detailed picture of the policy direction he would take. This report from the Ameriprise Investment Research Group provides a summary of Biden’s proposals and outlines several potential investment implications.
Election year market volatility
Market volatility tends to rise in the fall during both election years and non-election years. However, election years tend to have higher volatility in the spring as voters participate in primaries, and there are often a number of candidates running for office. Interestingly volatility in election years tends to be lower in the summer, as the presidential field typically narrows.
Sources: Bloomberg, Standard and Poor’s. S&P 30 day volatility during election years based on calendar month. Data as of 03/31/2020, beginning in 1946. Past performance does not guarantee future results.
If you have concerns during periods of market volatility, call your advisor. He or she knows you and the details of your portfolio best. Together, you can determine what, if any, action you need to take.