"How the 2024 Election Year Could Shape Investor Portfolios and Market Forecasts"

The 2024 presidential election is expected to bring increased volatility to the stock market, which could impact Americans' 401(k) plans, as historical data shows lower average returns in election years. With a higher percentage of US household financial assets in stocks than ever before, the election's outcome could influence market performance and, consequently, retirement savings. Experts suggest that younger investors can withstand short-term volatility, but those nearing retirement should consider diversifying with less volatile assets. Historical trends also indicate that the market's performance in the three months leading up to an election can predict the winning party, with positive returns often favoring the incumbent. Investors are advised to balance safety and risk, especially in election years, to avoid missing out on potential rebounds while protecting their portfolios from downturns.