It’s hard to believe, but the U.S. Presidential Election was a year ago today. Per Ryan Detrick, Senior Market Strategist, “Although no one at the time would have believed it, the 12 months since Election Day have been among the least volatile ever for equity markets; not to mention the solid 21% gain the S&P 500 Index racked up along the way that has the bulls smiling.”
So where does the rally over the past 12 months rank? We looked at S&P 500 returns for each year after every U.S. election since 1950* and found that the current 21.1% rally ranks fifth on the list. The best return came at the start of President Clinton’s second term during the late ‘90s bull market, while the worst ever was the first year of President W. Bush’s first term amid the tech bubble.
We will take a much more detailed look at the past year since the election in our Weekly Market Commentary due out next Monday.
Article by LPL Financial