Pittsburgh, PA – Fragasso Financial Advisors, a Pittsburgh based investment management and financial planning firm, released a comprehensive analysis titled “Presidential Elections and Markets,” aimed at demystifying the impact of presidential election cycles on financial markets.

As investors face the uncertainty brought by the election seasons, Fragasso Financial Advisors’ latest blog post offers an in-depth look at historical market behaviors during these periods and provides strategic guidance for managing investments amidst the political turbulence.

“Many investors express concern about how presidential elections will affect their portfolios,” said Robert Fragasso, Chairman and CEO of Fragasso Financial Advisors. “Our analysis is designed to alleviate these fears by providing a factual, historical perspective combined with actionable strategies for investors.”

Key Findings from the Analysis:

This post, available in full at Fragasso’s financial blog, highlights several critical insights:

  • Historical Performance During Election Years: The analysis reveals that historically, U.S. stock markets have shown resilience during election years. The S&P 500, for instance, has averaged a return of around 8.9% during the last 23 election cycles.
  • Short-Term Volatility vs. Long-Term Growth: While short-term market volatility is common as investors react to political headlines and poll results, long-term investment strategies tend not to be significantly impacted by the outcome of elections.
  • Sector-Specific Impacts: Certain sectors may experience more pronounced effects based on the policies of the incoming administration. For example, defense and healthcare sectors often react to policy changes promised by presidential candidates.
  • Investor Sentiment and Market Performance: The post explores how investor sentiment can be influenced by elections, but it emphasizes that fundamentals such as corporate earnings, interest rates, and economic growth play a more crucial role in determining market performance.

Strategies for Investors:

Fragasso Financial Advisors recommends several strategies for investors navigating the markets during election seasons:

  • Stay the Course: Investors are advised to maintain their long-term investment strategies and not make drastic changes based on the speculative outcomes of elections.
  • Diversification: By diversifying portfolios across various asset classes and sectors, investors can reduce risk and better withstand short-term market fluctuations.
  • Consider Professional Advice: Working with a financial advisor can help investors navigate the complexities of election impacts on markets and align their investment strategies with their long-term financial goals.

“By understanding the historical trends and maintaining a disciplined approach, we help our clients navigate presidential election years with confidence.” added Michael Godwin, Chief Investment Officer at Fragasso Financial Advisors.

Investment advice offered by investment advisor representatives through Fragasso Financial Advisors, a registered investment advisor.

About Fragasso Financial Advisors, Inc.

Fragasso Financial Advisors, Inc. operates as an independent, primarily fee-based, employee-owned financial advisory establishment. Since its inception in 1972, the firm has been providing personalized financial planning and investment management services to individuals, non-profit organizations, and businesses. With a focus on long-term relationships and a commitment to providing the highest level of service, Fragasso Financial Advisors is a fiduciary, acting in their clients’ best interests with every decision.

Media Contact

Fragasso Financial Advisors
Contact name
Marsha Posset
Contact phone
Contact address
3402 Washington Road, Suite 301
United States

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