How much do elections impact the stock market and portfolio returns? Should elections even matter to long-term investors? These are the questions investors and financial professionals often consider in election years.
When the political and economic climate are challenging, the market discounts the added uncertainty of the election outcome and what policy changes may occur, which can lead to higher volatility. Historically, no matter which party wins or loses, election volatility has usually been short-lived and gives way to upward moving markets.
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