A popular theme touted by president election campaigns with each presidential cycle is: What will be the consequences on the stock market ? Yet it turns out that president elections are inconsequential.
Presidents and Elections
What matters more 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 president election.
A part of this is due to how crucial it is that our portfolio grow so we can reach our financial goals.
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.
But when we look in the rear view mirror of any president election, any given president’s impact on long term market changes was small.
That’s because market changes are overwhelmingly a function of how any given policy is implemented and it’s possible impact on the economy.
So, while it can be unpleasant to consider the candidate we don’t want to win, who wins just doesn’t have much economic impact outside of the economy and policy.
Next Step
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