The S&P500 has a great history of predicting the outcome of the Presidential Election.
Since 1928, the S&P500 has had an 87% success rate in predicting results, and it's been correct in every election since 1984. It's based on the index's performance in the three months prior to the election. If the index performance is up, the incumbent party is predicted to win; if it's down, the incumbent party is predicted to lose. It's been right in 20 of 23 elections since 1928. The only times it's been wrong was in 1956, 1968 and 1980. In 1968, the incumbent LBJ decided not to run for re-election and it was arguably the most tumultuous election cycle in American history. In 1980, the Iran hostage drama and a recession were the prevailing factors, even if the S&P 500 did rally in the 3 months prior to the election. There was no drama in 1956; Ike was just an extremely popular president and war hero and easily won re-election despite a -3.2% S&P500 return in those prior 3 months.
Election day is November 3rd.
The S&P500 Index on August 3rd was 3,294.61.
The S&P500 Index on September 21 is 3,254.25.
The S&P500's return in the August 3-November 3 period leading up to election day is currently:
-1.22%
Since 1928, the S&P500 has had an 87% success rate in predicting results, and it's been correct in every election since 1984. It's based on the index's performance in the three months prior to the election. If the index performance is up, the incumbent party is predicted to win; if it's down, the incumbent party is predicted to lose. It's been right in 20 of 23 elections since 1928. The only times it's been wrong was in 1956, 1968 and 1980. In 1968, the incumbent LBJ decided not to run for re-election and it was arguably the most tumultuous election cycle in American history. In 1980, the Iran hostage drama and a recession were the prevailing factors, even if the S&P 500 did rally in the 3 months prior to the election. There was no drama in 1956; Ike was just an extremely popular president and war hero and easily won re-election despite a -3.2% S&P500 return in those prior 3 months.
Election day is November 3rd.
The S&P500 Index on August 3rd was 3,294.61.
The S&P500 Index on September 21 is 3,254.25.
The S&P500's return in the August 3-November 3 period leading up to election day is currently:
-1.22%
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