Kiplinger

How Presidential Elections Affect the Stock Market

Every four years, politics and finance converge as Americans elect a president and investors try to figure out what the outcome means for their portfolios.

A look back at history shows that presidential election cycles indeed correlate with stock market returns – although not in the same, clockwork way that, say, the moon pulls on tides.

As for the outcome of elections? The impact might surprise you.

Below, a few things investors should consider in election years.

The Presidential Cycle

Wars, bear markets and recessions tend to start in the first two years

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