How Stocks Have Historically Performed Post Election

  • 📰 Investingcom
  • ⏱ Reading Time:
  • 58 sec. here
  • 4 min. at publisher
  • 📊 Quality Score:
  • News: 33%
  • Publisher: 53%

Nasdaq 100 News

S&P 500,NASDAQ Composite

Stocks Analysis by ValueWalk (Dave Kovaleski) covering: Nasdaq 100, S&P 500, NASDAQ Composite. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com

However, volatility has historically subsided post-election day and returns have been solid.As we enter October, the U.S. presidential election is just over a month away. In past presidential election cycles, the period leading up to election day has been fraught with stock market volatility, due mainly to the heightened sense of uncertainty.

Even in the month of September, typically one of the most volatile months on the calendar, the S&P 500 gained 2% and the Nasdaq rose 2.7%. “This election poses uncertainty, and markets hate uncertainty,” wrote Fehr. “However, that election volatility is more reflective of the market repricing potential new policy proposals, instead of an implication that the election outcome represents a win-or-lose scenario.”As quickly as volatility rises leading up to election day, it drops after it. Historically, the VIX has plummeted after election day from 22 to below 16 after about a week. After around 30 days the VIX is at around 15.

But from election day through year-end, markets have historically been strong. Going back to 1945, the market was positive after the election until the end of the year in all but three presidential election years. And stock markets have gained more than 10%, on average, one year out from the election.Of course, there is no guarantee that this cycle will fall in line with past cycles, but Fehr points out that long-term performance is more about fundamentals than the occupant of the Oval Office.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 450. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Oracle Stock Soars 12% After Earnings Beat: Should You Buy?Stocks Analysis by ValueWalk (Dave Kovaleski) covering: Microsoft Corporation, Oracle Corporation, Alphabet Inc Class A, Amazon.com Inc. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Oil Stocks: Tropical Storm Francine Brings on the BullsStocks Analysis by ValueWalk (Dave Kovaleski) covering: TotalEnergies SE, Exxon Mobil Corp, Crude Oil WTI Futures, Sunoco LP. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Berkshire Hathaway: The Most Consistent Stock on the MarketStocks Analysis by ValueWalk (Dave Kovaleski) covering: Dow Jones Industrial Average, NASDAQ Composite, Berkshire Hathaway Inc Class A. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »