Post-Presidential Election Market Outlook

Post-Presidential Election Market Outlook

Thank you for tuning into FFR Trading for your latest market updates and financial news! In today’s discussion, we will cover a post-presidential election market outlook, data covering how previous presidential elections influenced the markets, and what it could mean for your investing strategy. Without further delay, let’s dive in!

A lot of us are glad that the election is finally behind us… as it is a very stressful time for all Americans and a time when stark division across our is at its most prominent time. Regardless of the final tally, the market has cast the deciding vote. The Bulls can celebrate – again! – and the Bears can only lick their wounds, for now, at least BUT the epic rally does continue. The truth is when it comes to the presidential outcome, the market does not really care! As the market soars, even with the final count still in question, one thing is clear: the market doesn’t care who the next president will be!

Either way, the Fed has the economy covered. The consensus now is that there is no adverse event that can’t be met with more stimulus and quantitative easing.

Yes, we know this sounds crazy.

Yes, we are dealing with insane debt levels!

Yes, stock valuations are at ridiculous highs, especially in the tech sector!

Yes, COVID is still running rampant.

And yes, there is still a lot of concern as cases rise and another possible shutdown is around the corner.

However, we also have news that a strong vaccine is in place that has been more than 90% effective in current trials. This, among other reasons, has given the stock market a huge boost! If there is going to be any retracement that could take stocks down at some point, it will more than likely happen overnight. Still, as traders, we have to recognize that it isn’t happening right now. We can only do our best to take advantage of the current situation and prepare for what has yet to come. 

With regards to trends of a post-presidential election market outlook, let us take a good look over data covering elections over the last 20-years. Throughout each election, the stock market had different reactions.

For example, we are going to give you a few data points based on the performance of the S&P 500 for you to think about and consider when arranging your strategy and portfolio.

Beginning with the election in 2000, the S&P was down by  5.90% for a period of 10 days after the elections and had dropped more than 122 points by the end of the year.  

For the elections in 2004, the market was up 3.97% 10 days after the election and by the end of the year closed at over 41 points higher.

For the 2008 election, the market continued its downward spiral for an additional drop of 14.58% 10-days after the election and the S&P 500 ended the devastating year at 903.25.  

For the 2012 election, the market was down 2.48%. We did have some recovery and ended the year at over 1400 which was around the range it was trading going into the election.  

Finally, in the 2016 election, the market jumped up by 2.96% after the election and continued a bullish direction through the end of the year.

All this data allows us to come to the simple conclusion, trading is a short-term game!

 If these factors that we mentioned are a concern, then it is time to adjust your long-term holdings accordingly. In fact, at FFR Trading we have found that one good way to help hedge against a sudden downside move is with a long-short strategy. For example, an options strategy can be designed to be ready when the next big down-move finally arrives. It has the potential to be a great way to cover your buy and hold portfolio. If the strategy is designed properly, you can also make money when prices go up – as they are for this year’s election. Now is the time to get positioned with a flexible strategy that will generate profits regardless of the market direction.   

If you would like to learn more about our options strategies, click here to learn more. With the option’s strategy provided by our experienced partnered trader, you have to potential to trade with greater safety, make more despite the market, and capitalize on leverage with a relatively small account. Visit our Youtube to learn more about what our options trading strategy can do for you! You can even sign up to get free access to this option’s strategy’s performance.

FFR Trading prides itself on connecting aspiring investors with qualified traders. Whether you are just starting investing or looking to boost your existing returns with a new strategy, you can rest easy knowing that we have are here with a strategy to fit your individual portfolio needs. We strive for complete transparency with our clients, focusing on financial education and allowing them to decide what their ultimate goal is and how they want to get there. We work hard to keep our clients informed of all market trends so that they are able to be prepared for any situation. If you would like to learn more about FFR Trading, please don’t hesitate to contact us by filling out our contact form, giving us a call at (800) 883-0524 , or sending us an email at [email protected]. For more frequent updates, be sure to check in with us on social media with  Instagram, Facebook, Twitter, and LinkedIn. We hope that you enjoyed our Post-Presidential Election Market Outlook and hope that it provides food for thought. Above all, keep on pushing everyone! Happy Trading!

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