Trump vs Biden: How Do Elections Affect the Stock Market?
We're counting down to Nov. 3. The election between Donald Trump and Joe Biden is one of the most anticipated elections in modern history. The only thing that holds more sway in the news is the ongoing COVID-19 pandemic. With a ton of votes already in early, and polls opening Tuesday morning, just what does an election do to the stock market?
According to analysts at U.S. Bank, a division of U.S. Bancorp (NYSE: USB), equity and bond markets tend to underperform their typical 12-month trends during the year of a general election.
It's not hard to see why when you consider all the noise. Every single news source reports evolving commentary daily. Within that commentary, citizens (including investors) are flooded with a lot to think about. Will a liberal government sway the market with tighter regulations and taxes on industries? Will four more years of tough trade stances from the Trump administration weigh on international dealings?
Source Fool.com
