Unless you have been living under a rock these past few weeks, you are well aware of not only all the chaos within the Democratic party political leadership but also the attempted assassination of former President Trump. So what does all this mean for the stock market and maybe more importantly, your own portfolio?
Depending on the person, presidential election years can be entertaining. Personally, I hate them and am thankful they only occur every four years. However, as one of the owners of LCM Capital Management, a federally registered investment advisory firm, it’s our job to pay attention to what is happening in the world and how it might be affecting our clients’ portfolios. If you have read any of our previous articles, you know my firm does not have a great deal of respect for market strategists, economists or analysts since they are only guessing at what will happen in the future; more importantly, most of their guesses are usually wrong.
The stock market’s relationship with political events, particularly U.S. presidential elections and the party affiliation of the president, has long intrigued investors and analysts. During election years, there always seems to be heightened scrutiny on market’s performance as investors and analysts try to predict (that is, guess) how political changes might impact the economy and as a result the stock market.
However, despite the intense focus, historical data suggest that the stock market performance during election years does not significantly affect long-term investment …