Do you know what one of the number one causes of market losses during an election year is?
Fear.
In fact, the uncertainty of the elections can stoke your fears. It may even encourage you to make rash, emotional decisions.
That can lead to losses, but it doesn’t have to.
If you know the facts about the market during presidential election years, you can potentially avoid investing mistakes that so many others make.
“Investing should be like watching paint dry or grass grow. If you want excitement… go to Las Vegas.”
That’s what Paul Samuelson, a noted economist and Nobel Prize winner, says—and that’s not always easy to remember during presidential election years.
Why?
The frenzy of an election brings endless news cycles, high emotions, and stress. And if you feel that stress, you’re not alone. At least half of all Americans get stressed out by elections.
You know the best way to avoid election stress and the rash investment decisions it can trigger?
It’s by knowing the facts about market behaviors during presidential election years.
When it comes to the market during a presidential election cycle, the election itself may not matter as much as you think. We explain why and look at some proven facts about the market and elections in this month’s Visual Insights Newsletter. Click here to see it!
No matter what party is in power, it’s important to remember that past results with one party in the White House don’t guarantee future results if that party wins.
Go ahead and click here to discover more facts about politics and the markets.
