Broker Check

How The S&P Has Historically Performed from Election Date Through Year End

October 26, 2020

The November 3rd Election is upon us! Our most recent Blog from October 22nd featured a replay of our Election Webinar. Within that presentation we shared a chart that considered how the S&P 500 has historically performed in the next calendar year following an election. Those market results on average favored a Democratic win. 

This current Blog features a chart from First Trust that shows how the S&P 500 fared in the eight-week period following an election, i.e.until the end of that particular calendar year. Those results on average favored a Republican win. 

"This time it's different," some will say. Every election has had something unique about it so we're not prepared to toss out historical considerations for that rationale. Here's our bottom line - at Henry Wealth Management we want you to VOTE twice:

VOTE 1: Cast your ballot to retain or replace the current administration, and 

VOTE 2: Cast your ballot to retain your current portfolio. The only reason to change your long-term asset allocation should be based on a consideration of your long-term goals, not because of a current event.  

Below is the First Trust chart that I referenced as well a link to a pdf which may be a little easier to review and expand: How The S&P Performed from Election Date Through Year End

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