How Does The Election Affect The Stock Market? 2020 Presidential Election скачать в хорошем качестве

How Does The Election Affect The Stock Market? 2020 Presidential Election

Exactly HOW Does The Election Affect the Stock Market? We answer what has happened in the past, and what we can expect going into this 2020 Presidential Election. 📌 Subscribe for Weekly Videos: https://bit.ly/humphcrew ► My Stock Portfolio ➭ https://whop.com/c/critical-wealth/ytd ► Investing Discord ➭   / discord   ► Get a Free Stock (valued up to $1600 when you deposit $100) with WeBull ➭ https://a.webull.com/i/HumphreyYang ► Robinhood (get another free stock!) ➭ https://robinhood.c3me6x.net/qPyKY How exactly will the 2020 Presidential Election Affect the Stock Market? Well, today I answer it in 3 different parts. 1. How the stock market has performed before an election 2. How the stock market has performed during election time 3. How the market has performed after an election 4. Lastly, How I'm going to manage my money this election and what you should be paying attention to During an election year, in the weeks and months leading up to the election itself we are going to need to prepare for increased volatility. Simply put, volatility is elevated in the market because the markets hate uncertainty. Historically speaking, in the periods before the actual election day, according to CNBC, "The S&P has traded positive in each six-month period before a presidential election except 2008." During an election night, swings in the market can be quite volatile and we can point to 2016 as an example of this. From this article in Forbes, we can recall that during the 2016 election when on "the night that Trump won the presidency, the S&P 500 actually fell 5% in pre market trading!! Triggering a circuit breaker to halt trading., but by the time the market closed the day after the election, the index was 1%". If you remember back in 2016, it was a shock to many people that Trump actually had won the election, so we can see that the markets reacted in an irrational sort of way being down 5%, but by the end of the day smoothing out. But what we actually see is that between 2017 - 2019, the average annual return of the S&P 500 was over 14% chart. It seems that EVERY election cycle, we all believe, and the media believe that whoever the new president is going to be is going to shake up markets. But is that actually the case? Let's look into the historical for what happens AFTER an election. Historically speaking, "Since 1833, the Dow Jones industrial average has gained an average of 10.4% in the year before a presidential election, and nearly 6%, on average, in the election year. By contrast, the first and second years of a president’s term see average gains of 2.5% and 4.2%, respectively." The one thing I want to bring up this year is that volatility might be increased by quite a bit this year. We have a number of factors that could cause increased volatility this year and they include the following list: Voting results delayed past 48 hours (72 max) - due to Corona virus, the mail in ballots might take longer than expected. Trump claims the vote counting process and/or certified results are rigged, fraudulent The last time something similar to this happened was back in the 2000 election, where the actual winner wasn't announced until December 15th, the markets were crazy volatile due to the uncertainty of who'd become President, the S&P 500 tumbled more than 8% during that time. How am I going to be navigating the markets during this election? 1. I'm personally holding the course with my strategy that I've been following for quite a bit - which is to consistently invest in a well diversified portfolio. 2. I am not going to be phased by the election volatility. I'm going to not let the volatility affect my investment decisions too much either, and I'm going to add to my positions on a regular monthly basis. 3. Lastly I'm gonna stay away from the headlines. In the long term we know that the market goes up (from the first chart), that as long as we buy and hold we'll be OK. 📷 Instagram:   / humphreytalks   📲 Tik Tok:   / humphreytalks   🐪 My free weekly newsletter ➭ https://humpdays.substack.com ▶️ My name is Humphrey Yang, I am an entrepreneur who has built businesses and am passionate about Personal Finance. This channel is dedicated to helping people (whether you're 21 or 81) become better with Personal Finance, Investing, and Entrepreneurship. I hope these videos help! 📧 Contact: If you have a question feel free to leave me a comment on my videos or follow me on IG and send me a DM! If you have a business related inquiry, please then send me an email at [email protected] Disclaimer: I am not a financial advisor, any investment commentary are my opinions only. Some of the products and services that appear on this channel are from companies that I have an affiliate relationship with, such as Robinhood, for which I recieve a small percentage made via those links, but it doesn’t cost you anything extra!