Do U.S. Presidential Elections Impact Capital Markets?

October 2016
Every four years, in the months leading up to the U.S. presidential election, we often get asked how capital markets will react if the Democratic or Republican candidate wins the election. It is easy to assume that the U.S. election will have a big impact on capital markets, particularly given the length of the electoral cycle and the coverage by the media. However, historical data seems to suggest that elections do not drive market returns, particularly for those investors with a long time horizon. While we cannot make predictions about the election’s short-term impact on capital market performance, we would suggest clients look beyond the election and stay with their long term investment plan.

Download PDF