Fear the Stock Market Will Crash if a Democrat Wins the White House?
Updated: Sep 1, 2020
I have clients, friends and colleagues who fear that if Joe Biden is elected our country's president, the U.S. stock market will crash. Are those fears unfounded or legitimate based on the past seven presidential elections over the past 28 years?
This exhibit by First Trust shows that since 1993, the S&P 500 has gone up more in the first year of the first term of presidents who were Democrats compared with presidents who were Republicans. Furthermore, the S&P 500 had a better return during 2009 (the year the White House, Senate, and House were all controlled by Democrats) than 2017 (the year they were all controlled by Republicans).
As a financial advisor, I need to include this disclaimer: Past performance is no guarantee of future results. This blog article is educational and should not be construed as investment advice. Before investing, please consult with a financial advisor who is a fiduciary and can work with you to make investment recommendations appropriate for your personal situation.
Laurie Itkin, CDFA, is a financial advisor, certified divorce financial analyst and author of the Amazon best-seller, Every Woman Should Know Her Options. She manages investment, trust and retirement accounts as a wealth manager at Coastwise Capital Group and has provided financial preparation, planning, and analysis to individuals and couples in more than 130 divorce cases throughout California. Subscribe to her monthly newsletter or contact her to schedule a brief phone consultation at firstname.lastname@example.org or 858-220-4736.