Every 4 years, the US presidential takes center stage and grabs all the headlines. For investors however, the outcome doesn't change all that much. Democrat or Republican, landslide or close call, Trump or Biden?
It doesn't really matter and whatever happens, the stock market will quickly get back to its old normal. The market (S&P500) tends to move abit slower in the 12 months leading up to an election and the following 12 months, with about 6,5% and 5% respectively. This is compared to the average 8,5% on a normal year.
The best combination is a democratic senate, a republican house and a democratic president, which has yielded an average of 13,5% return anually. The difference between the two big options is minimal though and investors shouldnt trade around short term things like an election.
Disclaimer: This video is purely my opinion and should not be regarded as factual information. I am not a financial advisor. This is not a recommendation to buy or sell securities. Do not assume any facts and numbers in this video are accurate. Always do your own due diligence.
Investing for all is a project seeking to provide basic information about how and where to invest in stock market. The stock market is a safe place to put your money and has given great returns over hundreds of years.
I often touch on topics such as Investing for beginners, stock recommendations, ETFs, stock market basics, dividend investing, how to find and evaluate new stocks etc.
Stocks go up and down, don't invest simply based on what you hear or see in my videos. I might have a bias towards stocks I talk about, but I try informing my viewers when this might be the case.
My personal stock portfolio currently consists of the following stocks:
Activision Blizzard (ATVI stock)
Amazon (AMZN stock)
Microsoft (MSFT stock)
MongoDB (MDB stock)
Nextera Energy (NEE stock)
Nvidia (NVDA stock)
Tesla (TSLA stock)
The Trade Desk (TTD stock]