Looking at the evidence of how US Presidential terms have affected US share markets its evident that the outcome of an election is only one of many inputs affecting share markets. What the chart shows is that there is a consistent upward trend regardless of the administration in place. The lesson from this is invest for the long-term don’t be influenced by short-term changes.
Some of the statistics are interesting when comparing the Trump and Biden years:
– Trump (2017 to 2021): maximum unemployment 14.8%, annualised inflation 1.8%, average deficit/surplus -6.6%, average annual GDP growth 1.4%
– Biden (2021 to present): maximum unemployment 6.4%, annualised inflation 5.5%, average deficit/surplus -7.8%, average annual GDP growth 3.4%
Of course, Covid-19 did have an impact on both Presidental terms.
Disclaimer: Past performance is not a guarantee of future results.