Capital Markets: Observations & Insights

I

Afraid of Change The Election

I • Historically, the stock market has been anxious regarding political change ‒ The fourth year of a presidency, or the year immediately prior to a new election, has been the worst of the four-year cycle

II

U.S. Equity Returns in Year of Presidential Cycle

III

15.4%

10.7%

IV

8.1%

5.5%

V

Year 1

Year 2

Year 3

Year 4

VI

Source: FactSet and Alger. S&P 500 average price performance from November through October since 1980. The performance data quoted represents past performance, which is not an indication or a guarantee of future results.

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