Presidential Elections and the Market

“Do I see a pattern? I see no pattern.” –Mark Gochnour, Dimensional Fund Advisors

08-31-2020

Who do you thing is going to win the presidential election? What do you think the markets will do if Biden wins?….or if Trump gets re-elected?

These are the questions that I’m getting asked most frequently these days. My answer is similar to Mr. Gochnour’s. There is no pattern!

Check out this short (2.5 minute) video from DFA, What History Tells Us About Elections and the Market.

The chart about 2 minutes 20 seconds in tells the whole story. The markets have rewarded long-term investors under a variety of Presidents.

The goal of all investors should be to capture the long-term returns of the capital markets regardless of who’s in power in the White House.