Will the presidential election heavily impact the stock market?
Kingsview Wealth Management CIO Scott Martin and UBS First Vice President- wealth management Mark Smith discuss their outlooks for the market amid the presidential election.
History suggests a President Trump victory on Election Day would be the best outcome for the stock market.
Continue Reading Below
Since 1950, the benchmark S&P 500 has gained 9.6%, on average, in the year following a president winning reelection, according to an analysis from LPL Financial. The index has risen 71% of the time.
On the other hand, the S&P 500 has averaged a 4.8% gain if the incumbent loses while climbing 50% of the time.
TRUMP ELECTION WIN IS BEST CASE FOR STOCKS: JPMORGAN
“Think about it—usually when a president wins reelection, it means the economy is going pretty strong, so stocks tend to do well,” wrote LPL Financial Chief Market Strategist Ryan Detrick. “The flip side is that new leadership in Washington can bring with it potential change that could rock the boat and hold stocks back.”