
- Poli-Economic Outlook for 2025 by Dustin Granger, CFP® - January 13, 2025
- The “Secret” to Growing Wealth - October 30, 2024
- Election Years and Your Investments: Why Staying the Course Pays Off - October 9, 2024
Election years always bring a wave of uncertainty. For many, it feels like the political stakes couldn’t be higher, and this anxiety can easily spill over into concerns about financial markets. But after 20 years as a financial advisor, I can confidently say that election cycles don’t have to disrupt your investment strategy. In fact, history shows that markets tend to rise regardless of the election outcome.
Historical Market Trends in Election Years
Over the past 90 years, U.S. stocks have consistently trended upward, no matter which party won the presidency. A $1,000 investment in the S&P 500 made when Franklin D. Roosevelt took office in 1933 would have been worth over $21 million by the end of 2023, despite the turnover of seven Republican and eight Democratic presidents. The chart below highlights how consistently the markets have risen through election cycles, whether Democrats or Republicans were in power.

[Growth of Hypothetical $1,000 Investment in S&P 500](GuideToInvestingInAnElectionYear.pdf, page 3)
This demonstrates that while elections can feel like make-or-break moments, they are not the defining factor in long-term market performance. The long-term upward trend proves that resilient markets, not politics, drive stock growth.
Volatility Is Normal—But Short-Lived
Every election cycle, I see the same pattern: dread and polarization. No matter which side is winning, people often believe the world is coming to an end. Democrats worry when Republicans are poised to win, and Republicans feel the same when Democrats are favored. I understand these emotions, but I’m here to save you from making knee-jerk reactions that can hurt your portfolio.
Market volatility during election years is normal—especially during primary season—but it tends to be short-lived. The markets experience volatility during the first five months of election years. However, after the primaries end, the market typically returns to its upward trend, with an average gain of 11.3% in the 12 months following the primaries.


The takeaway here is that reacting to short-term market fluctuations could cause investors to miss out on potential gains once the election dust settles.
Don’t Let Politics Derail Your Long-Term Plans
It’s easy to let political anxieties cloud your investment decisions, but my role as your advisor is to keep you focused on the long run. We build portfolios designed to weather both good and bad times. By making emotionally-driven decisions, you risk sabotaging the long-term growth potential of your investments.
Of course, if you’re nervous about the political climate or how it might affect your portfolio, we’re here to talk it through. We can make adjustments if you feel strongly about it, but remember—staying invested is usually the best strategy.

The Pitfalls of Sitting on the Sidelines
Many investors are tempted to move to cash during an election year, hoping to avoid potential risk. While this may feel like the safer option, history proves otherwise. Data shows that investors who stayed fully invested or made regular monthly contributions during election years consistently outperformed those who moved to cash.
Fear often drives investors to make rash decisions that end up costing them, but this rarely results in better outcomes.
The Key to Success—Stay Invested
Ultimately, long-term success comes from time in the market, not timing the market. Whether you’re fully invested throughout the year or making consistent contributions, staying the course is crucial for long-term gains.
As we approach another election season, it’s important not to let politics distract you from making the best financial decisions. Elections come and go, but a disciplined investment strategy will stand the test of time. If you’re feeling uncertain, let’s talk about it. Together, we can ensure your portfolio is positioned to thrive no matter the political outcome.
Written by Dustin Granger, CFP® on 9/24/24
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.