Try as hard as you can to ignore it all. History makes one thing clear: There is little correlation between elections and stock performance — particularly in the short run.
Here’s how the inflation-adjusted S&P 500 (INDEX: ^GSPC) has performed six months and one year after the last 17 presidents took office (keep in mind: Johnson and Ford became presidents without direct elections):
To read the full article from Morgan Housel follow the link: What Stock Do After Elections
So keep in mind this week that:
- You should want to own good businesses.
- You should want to hold them for a long time.
- You should want to buy them at great prices.
- None of those three should be materially influenced by who wins the election.
In other words, buy companies — not politics.