Kiplinger

2020 Election: The Stock Market Reaction

As we head into election day, investors are understandably wondering—and even anxious—about how the U.S. presidential election will affect the financial markets. It’s important to remember that this year, especially, the election isn’t the only market driver, or even the main one. “Clearly there’s going to be a market impact from this election, but some of what impacts the market will be decided by a slew of other things beyond who’s at the top of the ticket,” says Ed Mills, a Washington policy analyst with investment firm Raymond James. “Where are we with the virus? Where are we on the economy?”

As the answers to those questions unfold, investors can at least look to history for some clues about the stock market. The four-year presidential market cycle is well known on Wall Street. During a presidential

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