With just three weeks to go until the presidential election, it’s natural to see heightened concerns among clients and advisors. Many wonder if they should pull out of the market, fearing potential volatility or negative outcomes. But history shows us a different perspective.
Market reactions to elections are often unpredictable, and trying to time your investments around them can be a risky strategy. In fact, since 1928, there have only been two instances where the market dropped double digits within 30 days post-election. The first was during Obama’s victory amid the Global Financial Crisis, and the other was the 1948 “Dewey Defeats Truman” election.
The lesson? Staying fully invested for the long term has consistently proven to be a more effective approach than reacting to short-term noise. Elections come and go, but a disciplined, long-term strategy helps navigate uncertainty and achieve sustained growth.
