Skip to Content
US Videos

Don't Try to Time Elections

Resist the urge to let predictions affect your portfolio.

Ian Tam: With the U.S. presidential election fast approaching, you as an investor might be tempted to tactically adjust your portfolio in anticipation of what might happen in the wake of a Biden or a Trump administration. But does it actually make sense to do this? Let's have a look at what the data says.

This chart shows what would happen if you had invested $100,000 U.S. dollars into the S&P 500 Total Return Index on Oct. 31 in each presidential election year since 1972. Each line represents a different presidential term with the president highlighted on the right. You can see that over the medium term, or about 48 months, the results vary dramatically.

To view this article, become a Morningstar Basic member.

Register for Free