July 2024

Increased Volatility Sometimes Happens in Election Years

2024 Q3 Economic Commentary…

Election years are often marked by increased volatility. Investors are generally uncertain about potential policy changes and their impacts on various sectors. This uncertainty can lead to short-term fluctuations in stock prices. This is especially true when the election outcome is still highly unpredictable.

In many election years, a pre-election rally has occurred, particularly when the market anticipated a favorable outcome for business-friendly candidates. For instance, the Dow Jones Industrial Average saw significant gains in the months leading up to the 1984 and 1996 elections, reflecting investor optimism.

Future BrightIncreased Volatility Sometimes Happens in Election Years
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