As Election Day Approaches, What Does History Tell Us About its Impact on Financial Markets?

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Oct 29, 2024, 15:46 ET

Zephyr's Market Strategist Ryan Nauman looks at historical numbers

NEW YORK, Oct. 29, 2024 /PRNewswire/ -- What impact will the outcome of the U.S. Presidential election have on financial markets? Zephyr's Market Strategist Ryan Nauman took a deep dive into post-election results from past elections offering some interesting insights.

"Inauguration years historically yield strong returns across both parties," says Nauman of the results. "The S&P 500 index delivered over 20% returns during the last four inauguration years, demonstrating a trend of positive market performance regardless of the president's political affiliation in 2021, 2017, 2013 and 2009."

When reaching back over the past 12 election years, four resulted in 30% returns for the S&P Index; 2013 (Obama), 1997 (Clinton), 1989 (Bush Sr.), and 1985 (Reagan). Nauman acknowledges however that the overall economic climate and corporate earnings are more crucial drivers of market performance than simply Presidential leadership.

In examining the data, Nauman pointed out the S&P 500 index recorded a strong +15.2% return under President Clinton and a +13.8% return during President Obama's terms. In contrast, President Trump's administration achieved a solid +13.7% return.

Other insights from Nauman's Zephyr Election Playbook Insights include:

The administrations that saw negative equity returns throughout their administration.
Which U.S. Presidents that have seen more significant fluctuations following election day.
Which political party realized the highest bond and equities performance during their term.

Review Zephyr Election Playbook to learn more or click here.

About Zephyr
Zephyr's is the industry's most awarded asset and wealth management software, earning top honors for data and research, technology platform and most recently "Best Overall Analytics Platform" in the 2024 FinTech Breakthrough Awards. The solution offers portfolio construction, proposal generation, advanced analytics, asset allocation, manager screening, risk analysis, portfolio performance and more, transforming multifaceted data into digestible intel. The award-winning technology empowers investment professionals with financial technology to navigate a bullish or bearish market. Zephyr's investment management software allows asset managers to communicate their strategies more cost-efficiently by using customized, on demand template technology. To learn more about Zephyr, visit ZephyrFinancialSolutions.com.

SOURCE Zephyr, an Informa Company