How the election can affect your investments

The video explores how elections impact investments, highlighting increased market volatility due to uncertainty. It notes that the S&P 500 often experiences negative returns before elections but tends to recover afterward. Historical data shows that political control has minimal impact on long-term market performance. The video advises maintaining a diversified portfolio and sticking to an established investment strategy regardless of election outcomes.

What is a primary reason for increased stock market volatility during election periods?

• Increased interest rates

• Uncertainty about future economic policies

• High trading volumes

• Global economic crises

How does the S&P 500 typically perform in the months following an election?

• It becomes highly volatile

• It often shows positive returns

• It remains stable

• It usually declines

What has been the average return of the S&P 500 in election years?

• About 3%

• About 5%

• About 7%

• About 10%

What should investors focus on during election seasons according to the video?

• Withdrawing all investments

• Maintaining a diversified portfolio

• Investing heavily in stocks

• Changing their investment strategy

How does a split Congress historically affect the S&P 500's performance?

• It causes a market crash

• It leads to negative returns

• It results in higher volatility

• It has almost no impact