Elections, the stock market, and what we can control

By Cole Campbell

Yesterday, I stood in a very long line to cast my vote in the Super Tuesday Primaries (I now remember why I normally vote early). While waiting I found the “people watching” and eavesdropping fascinating. One of the common topics heard inside the polling place was, “how will the presidential election impact the markets”. In fact, it is one of the most common questions asked of us in election years.

So does the election cycle effect the stock market? Our research on other’s research is inconclusive; the truth is most of the studies contradict one another. The chart above is from the Stock Trader’s Almanac posted in a Frank Holmes article in Forbes. Did you notice the footnote at the bottom of the chart, “Past performance does not guarantee future results”? Last year was a “pre-election year” and the U.S. stock market had its worst performing year in the current presidential cycle. I am glad they provided the disclaimer.

Now what? Who knows? The important thing is to focus on things that you can control and the things that are most important to you. It’s the only way to experience genuine success! No one paints a better word picture of this than Carl Richards.
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Have a terrific week!