Presidents and Stock Market Performance: Any Correlation?

A popular theme touted by election campaigns with each presidential cycle is: What will be the consequences on the stock market ? Yet it turns out whoever happens to be president is inconsequential. What matters is policy and economic cycles.

There tends to be a delayed effect with any policy implementation (beyond the immediate reaction that tries to ‘get ahead’ of the impact the policy may have).

It can be a huge distraction to consider what the stock market’s reaction will be to any given candidate.

But keep in mind: It really doesn’t matter. Whoever wins will have no long term impact on your portfolio.

That isn’t to say you won’t experience any given day’s up or down movements, some of those being dramatic losses or gains.

This could be wrong.

But when we look in the rear view mirror, any given president’s impact on long term market changes are overwhelmingly a function of how any given policy is implemented and it’s possible impact on the economy.