Wealth Management Firm Near Me - Facebook Icon IMG  Wealth Planning Near Me - Certified Financial Planners Twitter Icon IMG   Find A Financial Advisor Near Me - Wealth Planners Linkedin Icon IMG 


Access Your Account Online

☰ Menu
Planning & Economy

Elections and Stocks: Wishes & Myths

September 14th, 2020

Financial Consulting Firm Near Me - Windsor Wealth Pic for 9-14-2020

Well, somebody did it….

We cannot get away from it. The political noise has started, and it is intensifying. Our friends and advocates are asking: What does it mean for my portfolio?

“The world, oops, the Bull-Market, as we know it, is going to come to an end if ******* gets elected.” So goes the recent spectacle of opinions.

Some of the uncertainties surrounding this election cycle will most likely spill over into stock prices, up or down, the effect most likely will be temporary and short-lived; no one knows or can predict the impact or direction, in my opinion.

Myth – Election results make a difference in portfolio returns.

Fact – When investing in equities, the probability of having a positive return in the first twelve months after the initial investment occurs approximately 73% – 74% of the time: Which syncs, admirably, with Schwab’s research finding that equity markets ended in positive territory in 17 out of 23 presidential elections = 74% of the time.

Financial Strategists Near Me - Windsor Wealth Pic for 9-14-2020

Democrats vs. Republicans – Myth: “Stocks always do better when Republicans win.”

Fact – According to Fidelity: If Republicans sweep the white house and congress, during the first two years of the presidency, stock returns are just over 12% compared to about 3% for a Democratic sweep. However, after four years, there’s almost no difference, +8.6% vs. +8.2%.

The same is true for a Presidential election: During the first two years after a Republican President wins, stocks go up by about 8% vs. approximately 6% for Democrats. But, after four years, the difference narrows to +8.6% vs. +8.8% = no practical difference.

So, vote for your favorite, knowing that your wish will most likely come true.

Carlos Dominguez – CERTIFIED FINANCIAL PLANNER™, Portfolio Manager, RJFS


Wealth Planners and Strategists Near Me - My-Risk-o-meter Icon Hover IMGWhen you get a minute try out our risk discovery tool – tell your friends




Photo by Derick McKinney, cropped by me.







Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, marketed as Windsor Wealth Planners and Strategist. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Windsor Wealth Planners and Stategist is separately owned and operated and not independently registered as a broker-dealer or investment adviser.

Raymond James financial advisors may only conduct business with residents of the states and/or jurisdications for which they are propertly registered.  Therefore, a response to a request for information may be delayed. 

Please note that not all of the investments and services mentioned are available in every state.  Investors outside of the United States are subject to securities and tax regulations within their application jurisdications that are not addressed on this site.  Contact your local Raymond James office for information and availability. Links are being provided for information purposes only. 

Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. 

Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.