Stock Market History During Presidential Election Cycles

This episode of "Protecting and Preserving Wealth" discusses the stock market's behavior during the presidential election years and its implications for investors. As the November 5th, 2024, presidential election approaches, many investors are concerned about market performance under different administrations and the potential for a market crash if the "wrong" president is elected.

Around $5 trillion is currently sitting in cash due to concerns over inflation and global uncertainties, not just the election. However, historically, the stock market has shown resilience and performed well during election years, with an average return of 11.6% since 1926. This data should instill confidence in the market's ability to weather political storms.

Alex explains that while the first half of an election year is typically weak, the second half often sees improvement. However, 2024 has been an exception, with a strong start driven by factors beyond the election. Despite potential volatility, we remain optimistic about the year's overall performance. This optimism should inspire a positive outlook in our audience.

We all agree that despite political tensions, investors must focus on long-term fundamentals rather than short-term market reactions. 

The conversation moves to why investors should consider allocating cash now. I explain that money market funds typically hold more cash during election years due to investor caution, but this strategy can lead to missed opportunities. With the S&P and NASDAQ up significantly in 2024, staying in cash could mean missing out on market gains.

When asked how Hosler Wealth Management positions client portfolios, Alex describes our pro-growth stance with a balanced approach that includes hedging strategies to protect against downside risks; I advise retirees to ensure their portfolios are inflation-adjusted and to draw income from fixed-income investments to avoid market volatility.

In conclusion, diversification and sticking to a well-crafted financial plan are crucial. Investors should remain focused and not be swayed by political noise. For personalized advice, Bruce invites listeners to contact Hosler Wealth Management.

 

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at [phone] or their Scottsdale office at [phone].

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures:  https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2025 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast  #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler