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Motley Fool Money · November 4, 2024 · 26m

How Markets React to Elections: The Data

The Motley Fool team examines historical stock market performance around elections. The data is clear: which party wins matters far less than investors think. Markets have risen under both parties, and selling based on election outcomes has cost investors more than any politician ever did.

This summary was generated from show notes and public descriptions, not from a full transcript review. Details may contain inaccuracies.

Canon

The team applies the Stoic framework: election outcomes, policy changes, and political chaos are outside investor control. Portfolio allocation, savings rate, and emotional discipline are inside investor control — and the latter matters more for long-term returns.

Highlights

The stock market doesn't care about elections as much as investors think — markets rose under every president since 1933 except Bush 2 (due to the financial crisis)
The team presents the data: the S&P 500 rose under Clinton (209%), Obama (182%), Trump (68%), and Biden (through 2024). The party in power matters far less than corporate earnings, interest rates, and global economic conditions.
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