Its time to relax and not give into the media hype.

As the 2024 presidential election approaches, the air is thick with anxiety and uncertainty. Both Democrats and Republicans are convinced that the fate of the world hangs in the balance, depending on who wins. But is this really the case? Or is it just a clever marketing ploy to get us to stay glued to the media?

The End of the World as We Know It

Both sides of the political aisle are convinced that the apocalypse will ensue if the other party wins. Remember the healthcare fears that dominated the Obama years? "Death panels" and "socialized medicine" were just a few of the doomsday scenarios bandied about. But what actually happened? The Affordable Care Act (ACA) was passed, and the world did not come to an end. In fact, the number of uninsured Americans decreased, and healthcare stocks had exceptional returns.

Similarly, during the Trump presidency, many predicted that the economy would collapse if the tax cuts and deregulation measures were implemented. But what happened? The economy boomed, with the S&P 500 index rising by over 50% during his term. *

No Matter What Happens, Companies Adapt to Change

One of the most compelling arguments against the idea that elections matter is the way companies adapt to change. Businesses are notorious for their ability to pivot and adjust to new circumstances. Whether it's a change in government, a shift in consumer behavior, or a technological disruption, companies have a remarkable ability to adapt and thrive.

Take, for example, the rise of e-commerce during the dot-com bubble. Many predicted that the collapse of the bubble would spell disaster for online retailers. But instead, companies like Amazon and eBay continued to innovate and grow, eventually becoming household names.

S&P 500 Performance: A Historical Perspective

To get a better sense of how the stock market performs under different presidential administrations, let's examine the S&P 500 index's annualized performance over the past eight presidents.

• Carter (1977-1981): 12.0%
• Reagan (1981-1989): 15.1%
• Bush Sr. (1989-1993): 14.6%
• Clinton (1993-2001): 17.5%
• Bush Jr. (2001-2009): -4.5%
• Obama (2009-2017): 16.3%
• Trump (2017-2021): 16.3%
• Biden (2021-8/31/24): 12.9%

***

As you can see, the performance of the S&P 500 index has been remarkably consistent, regardless of who was in the White House, except for Bush Junior, who served during the lost decade, which included the aftermath of the dot-com bust and the 2008 financial crisis.

Conclusion

So, what does this all mean for investors? Simply put, fear of elections should not control your investment decision-making. The outcome of the election may be important for your personal beliefs and values, but it has little to no impact on the overall direction of the stock market.

At Marc Alan Wealth Management, we understand that navigating the complexities of the financial world can be overwhelming. That's why we offer ongoing guidance and support to help you gain clarity in a confusing world with too much information. >>Send us a message today to learn more about how we can help you achieve your financial goals. 



*   S&P 500 Performance by President, https://www.macrotrends.net/2482/sp500-performance-by-president

*** Source Richard Bernstein Advisors LLC, Bloomberg Finance LP

Presidential Term measured by inauguration dates and 8/31/24 for Biden.