Market Volatility During Midterm Election Year | TVAMP
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2022… What a year!

Seems like we say that every year, nowadays.

We’re sure you are aware this year is a midterm election year. Something you may not be aware of is; midterm election years are often more volatile than other years.

The increased stress and uncertainty can make us second guess the future; however, TVAMP believes this presents a tremendous opportunity to take advantage of what usually happens next…

The chart below shows (in blue) how far the stock market (represented by the S&P 500) went down in each midterm election year, all the way back to 1946. Consequently, the green bar shows where the stock market was 1-year later (from the low of the previous year).

For example, in 2018 (President Trump’s Midterm election) the S&P 500 fell to a low of -19.8% that year and 1-year later it was 37% higher from that number.

You should always consider you risk tolerance and time frame when investing, for we never know what the future holds. But we believe this too shall pass…

Thanks for reading!

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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss. Past performance is not a guarantee of future results. 
 
The Standard & Poor’s 500 (S&P 500) is a stock market index containing the stocks of 500 American corporations with large market capitalization that are considered to be widely held. The S&P 500 is unmanaged and cannot be invested in directly.