Everyone is throwing around charts and data in an effort to show you what a change of presidential administration will mean for the stock market in 2017. In a Friday post, he offers a breakdown of how stocks have tended to perform in years like 2017 when a Republican administration takes over from a Democratic administration. Kaeppel looks at the percentage gain and loss for the Dow Jones Industrial Average from Dec. 31 of the election year through the subsequent midterm election year for each, in other words, roughly the first 20 months of each new administration.
Key Takeaways:
- Don’t be fearful of a big downturn in the markets. It is a part of the nature of stock markets. It will rebound. Be patient. A downturn would actually be a good time to buy stock, because the upturn will occur eventually.
- Be ready for the deluge of market analysis predictions. The opinions will run the gamut.
- Market downturns can be knee-jerk reactions to a change in government policy. Be patient.
“there’s “wrong way” and a “right way” to look at the numbers. The wrong way is to assume it’s time to avoid the stock market “because it is doomed to decline.””
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