How Does the U.S. Stock Market Perform in Election Years?

Posted by Visual Capitalist

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In just a few weeks time, the ballots will be in for one of the most controversial elections in U.S. history. Whether the tally ends in a Clinton or Trump presidency, it’s difficult to know the potential range of implications that the 2016 election will have on markets. 

In the mean time, investors are wondering how to best position themselves. How could the election possibly affect their portfolio, and how can they hedge against tail risks?

MARKET PERFORMANCE IN ELECTION YEARS

The good news for investors is that historically, the market has performed well in election years with the S&P 500 ending up in positive territory 82% of the time.

The bad news? This is clearly not a normal election.

The following infographic uses data from Fisher Investments to show how the S&P 500 historically performs during U.S. election years, as well as during the terms of specific presidents.

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