"Market Volatility and Political Elections: What Investors Need to Know"
Originally Published 1 year ago — by The Motley Fool
The potential impact of a second term for Donald Trump on the stock market is uncertain, with macroeconomic factors and policy proposals contributing to the uncertainty. History shows that both Republican and Democratic presidents have overseen stock market gains, with the S&P 500 rising an average of 6.9% under Republican presidents since 1945. However, factors such as declining money supply, high stock valuations, and unknown policy proposals could lead to a stock market plunge if Trump wins a second term. Nonetheless, long-term investors are likely to see success regardless of the election outcome due to the historical resilience of the stock market and the economy.