How the 2020 Presidential Election Could Impact Your Investments, Ep #12 

<p>What happens if Trump gets reelected? What happens if Biden gets elected? How will your investments and retirement be impacted? We are living in an interesting time in history. The Coronavirus pandemic has shaken up our economy, the stock market, the job market, and life in general. On top of that—it’s an election year, which historically comes with volatility in the market. So what does the election mean for your investments? Listen to this episode of Retirement Made Easy to hear my thoughts!</p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[2:27] How will the 2020 US presidential election affect markets?</li> <li>[5:25] Presidential Politics and Stock Returns</li> <li>[7:10] Stock Market Performance in Presidential Election Years</li> <li>[10:17] What if Joe Biden is elected as president?</li> <li>[16:50] Should we bail out of the market if Biden is likely to be elected?</li> </ul> <h2>How does a presidential election affect markets?</h2> <p>This J.P. Morgan <a href= "https://am.jpmorgan.com/lu/en/asset-management/per/insights/market-insights/on-the-minds-of-investors/us-presidential-election-2020/" target="_blank" rel="noopener">article</a> points out that since 1932 an incumbent has <strong><em>never failed</em></strong> to get reelected—unless a recession occurs during their time in office. The article goes on to say that ¾ of sitting presidents have been reelected. Those are good odds for President Trump, despite the COVID-19 related recession. </p> <p>Secondly, the S&P 500 volatility has been higher in election years. So we can expect a lot of volatility between now and election time. It’s interesting to note that markets often react positively immediately following the election of a Republican president. Their policies are thought of as more market-friendly. </p> <p>Another <a href= "https://www.researchaffiliates.com/en_us/publications/articles/614-presidential-politics-and-stock-returns-is-the-relation-real-or-spurious.html"> article</a> by Rob Arnott and Vitali Ka