With the upcoming election producing market volatility, it is important to maintain a long-term investment perspective. As measured by the S&P 500, market returns during election years average at 11.2%, then 9.3% in the subsequent year. The opposite trend is found in international indexes; market returns average higher in the year following a US election. However, historical trends aren’t direct predictors of future market returns, and therefore diversification is key in developing a prudent investment portfolio.

Sources: Dimensional Fund Advisors