This week I’m talking about investing in an election year. A lot of people are nervous about investing during an election year, but there are actually several reasons why election years are great for the stock market and great for your retirement portfolio! 

Today, I’m talking about how election years typically impact the stock market...and hence your retirement portfolio. 

Surprisingly, if you go back almost 100 years to the 1930s, you don’t see much impact on the stock market during an election year. In fact, the stock market was usually higher during an election year. 

If the incumbent is re-elected, the stock market for the following year was higher by about 6.5% and if a new President is in the White House, returns were only slightly lower at 5%. 

So the point here is that although and election year means potential changes to policy, laws, taxes, regulation, etc., the stock market’s reaction tends to be pretty muted, no matter what happens. 

And this is usually because no matter what happens, at least the stock market has some certainty over the political landscape over the next 2-4 years as well. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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