The bar graph below illustrates the average annual percentage change of the S&P 500 index during presidential terms since November 1980 (the final year of President Jimmy Carter’s administration).
Historically, the third year of a presidential term has been the strongest for the US stock market, attributed to increased government spending and economic policies implemented in the lead-up to the upcoming election.
In contrast, the fourth year, which coincides with the election year, tends to be the weakest. This can be partly explained by the political and economic uncertainties surrounding the election, which often dampen investor sentiment.
It’s important to acknowledge that numerous factors, independent of government policies, influence the stock market’s growth. For instance, during President Joe Biden’s four-year term, the S&P 500’s performance significantly deviated from the average of previous presidential terms, as illustrated below.
Specifically, 2021 witnessed exceptional growth due to low-interest rates and COVID-19 stimulus packages, while 2022 underperformed as the Federal Reserve raised interest rates to combat inflation. The years 2023 and 2024, on the other hand, experienced strong growth driven by a tech stock boom fueled by artificial intelligence advancements.
The Thriving Growth Investment Fund (TCGF) Goes Live
Success Fund Management Company (TCAM) is pleased to announce that the first trading day of the Success Growth Investment Fund (TCGF) will be Thursday, October 31, 2024.
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