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How to Navigate Market Uncertainty Amidst Presidential Politics

Saadia Ahmed, CFP®

1 min read

Jun 28

As the presidential election season intensifies, it's natural for investors to feel unsettled by the daily barrage of political headlines. With a potential rematch between Joe Biden and Donald Trump on the horizon, concerns about the impact of politics on the stock market and the economy are understandable.

History, however, offers a reassuring perspective. Despite the political polarization and significant policy debates—from budget and immigration to foreign policy—the stock market has demonstrated resilience across multiple administrations. For instance, from 2008 to 2020, during the Obama and Trump presidencies, the S&P 500 saw a total return of 236%, despite major events like the global financial crisis and the pandemic.

This underscores the importance of focusing on long-term fundamentals rather than short-term electoral noise. While policy can influence specific industries, overall, market and business cycles—driven by factors like technology and globalization—have historically played a more substantial role in economic outcomes than the effects of election cycles.

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