Many clients have been asking us if now is a good time to invest given that 2016 is an election year. In the video below, Kevin examines market returns for every election year since 1928. It may be surprising that the evidence shows stock markets actually have risen in the majority of election years and subsequent years. Although this data may make us feel better about election years we should not use this data to attempt to predict what markets will do this time.
A common response is, “This election is different.” While that statement is true, we must remember that people have been saying “this election is different” for every past election we can remember. We usually think the outcome of a presidential race will either send our economy into rapid growth or destroy it, but the actual outcome is almost always less extreme.
As always, please contact us if you have any questions regarding your financial security!
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel.The opinions expressed are those of Leading Edge Financial Planning as of 5 August 2016 and are subject to change at any time due to the changes in market or economic conditions.