US Presidential Elections and The Stock Market


There will be a steady stream of opinions from pundits and prognosticators about how the election will impact the stock market. As we explain below, investors would be well-served to avoid the temptation to make significant changes to a long-term investment plan based upon these sorts of predictions.

Efficient Financial provides a bespoke investment solution for our clients by specialising in low-cost institutional class portfolios that are globally diversified across multiple asset classes.

AT Efficient Financial we stress to our clients the negative effect that market timing can have on their portfolios and the need to believe in the investment strategy that we have implemented for them.

The markets are always volatile but having the discipline to stay the course and essentially ignore the ‘noise’ is essential in having a meaningful investment experience.

That said there are often times of anxiety and a need for reassurance.

The very recent election of Donald Trump as the 45th President of the United States of America is a case in point. Despite many polls predicting that, some with up to an 80% probability Hillary Clinton would win, like many other elections and referendum of late, including Brexit, the result went the other way.

(Our full report can be read on the attached pdfs)

US Presential Election and the Stock Market. Nov2016

Market Returns During US Election Years. Nov2016