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Are you tempted to change your investment strategy because of the 2020 Presidential Election? You’re not alone. In a recent survey, 45% of investors said they plan to make changes to their investments because of the election.1 If history is any guide, this may not be a wise decision. For the past 12 presidential elections, the S&P 500 Index has generally been positive 90 days before and after Election Day.

Market Performance Tends to Be Positive 3 Months Before and After Presidential Elections

S&P 500 Index (% Returns)

Source: Morningstar, 9/20. Past performance does not guarantee future results. The Index is unmanaged and not available for direct investment. For illustrative purposes only.

There are some notable exceptions. In 2008, the market sold off sharply due to the Global Financial Crisis. And in 2000, the market sold off by 4.1% from Election Day until December 12, when the Supreme Court handed down its ruling in the contested election between George W. Bush and Al Gore.2

Bottom line: Market returns are more dependent on the outlook for the economy than on the outcome of an election.

 

A financial professional can help you build a diversified portfolio that’s right for you despite the uncertainty surrounding the election.



1 Hartford Funds, “2020 Consumer Election Survey,” 9/20

2 Morningstar, 9/20

The S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.

Investing involves risk, including the possible loss of principal.

This material is provided for educational purposes only.

CCWP096   219558

The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, ETF or closed-end interval fund prospectus or summary prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds and the closed-end interval fund are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA/SIPC. Exchange-traded products are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc. Schroder Investment Management North America Ltd. serves as a secondary sub-adviser to certain funds. Hartford Funds refers to Hartford Funds Management Group, Inc. and its subsidiaries, including HFD, HFMC, and Lattice, which are not affiliated with any sub-adviser or ALPS. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

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