INVESTMENT

What selection means for investors


This infographic shows how financial markets have worked under Democratic and Republican presidents and in election years in general.  Market performance was fairly similar under Democratic and Republican presidents.  For 5 years they held office from 16060 to 2019-2019, the annual compound growth rate under Republicans was .3. %%.  For five years the Democrats held the White House for an average of .4. %%.  Experts believe that this statistically insignificant difference gives little value to your investment strategy.  The month-to-month market performance in election years follows no distinct pattern নি the numbers are randomly very close.  Stock volatility remains low in the months before and after the presidential election.  From 1860 to 2019, 100 days before and 100 days after the election, the volatility of the average S&P 500 index was 13.8%, compared to 15.7% overall.  Markets are complex, and their performance is not tied to just one variable.  Politics is just one part of a much bigger picture.  Above all, focus on your own goals and long-term investment strategies.  This is the most important thing.

Learn more about why patience and perseverance are so important when you invest. Goals and follow-through are a big part of every long-term plan. And remember: we’re all in it together.

* 60% GFD US-100 Index and 40% GFD US Bond Index, calculated by calculated historical data provided by Global Financial Data. The GFD US-100 index includes the top 50 companies from 1850 to 1900 and the top 100 companies from 1900 to the present. In January of each year, the largest companies in the United States are ranked by capital, and the largest companies are selected as part of the index for that year. The following year, a new list is created and it is chain-linked with the previous year’s index. The index is capital-based, and both price and return indicators are calculated. The GFD U.S. Bond Index uses U.S. government bonds approaching 10-year maturity, not exceeding 10 years from 1786 to 1941, and the Federal Reserve’s 10-year constant maturity yield begins in 1941. Each month, changes in the price of the underlying bond are calculated to determine any capital gain or loss. The index captures a fun portfolio that pays interest on a monthly basis. Dividend / interest coupons are reinvested in their respective indexes assuming all returns. The average income is the geometric average

** Vanguard calculation of the Standard & Poor’s 500 Index in election years based on data from Thomson Reuters.

Comments:
All investments are at risk, including the potential loss of money you invest.

Past performance is no guarantee of future income. The performance of an index is not an accurate representation of a particular investment, as you cannot invest directly in an index.

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