Hey! I need to capture as much of the traffic as I possibly can.
Regardless, of which candidate comes to office, equities will rise. The issue is not whether stocks will rise, but when they will. Stocks won't rise significantly this time because it does not seem likely that the incumbent will have a landslide victory.
The tight race points to a pattern where equities will adjust to the news of the election results on November 4 and then gradually rise a year from the date. Investors should capitalize on this important timeline of the U.S. presidential elections that more often than not increases portfolio sizes.
There is a lot of stuff out there with analysts harping that it is the economy and not the stock market that will show who will win. Nonetheless, the S&P 500 performance three months prior to the election has been a reliable indicator of who will come to power. If it performs well, the incumbent (in this case, President Obama) will win and the reverse is true if the S&P 500 declines.
