Elections Impact Markets Much Less Than You Think


S&P 500 Index price returns, from January 1981 to October 2016
click for ginormous graphic
Source: Fidelity


Some quick confirmation bias from my brain: This is a good piece from Fidelity regarding the 2016 madness and your portfolio:

“Hhistory suggests that elections typically have had little lasting impact on overall market performance. Among the most powerful drivers: the business cycle, interest rates, corporate earnings, and when it comes to your personal performance—your investment plan.

“The election may spur volatility—and active investors can try to take advantage of it—but for long-term investors with a solid plan, short-term market swings should be expected,” says John Sweeney, Fidelity executive vice president (see graph). “It’s important to take a long-term perspective. If you have a plan you like, stick with it. If you don’t, work with a professional who can help you build one that will help serve you well, no matter what may roil the markets in the short-term.”



Why politics and investing don’t mix (February 6, 2011)
Ideology Is Killing Your Investment Returns (February 10, 2014)