From Investing.com: 2024-09-15 04:00:00

In US presidential election years, the stock market typically faces challenges in September and October but historically, stages a rally in November-December, according to Bank of America. Financials perform well pre-election with an average return of 1.42%, while staples and utilities also show gains. However, technology and healthcare sectors underperform.

Post-election, energy and materials see significant gains, with energy climbing to second place with a 4.35% return and materials ranking first with a 4.77% return. Technology and healthcare continue to lag during both periods. Bank of America recommends seasonal strategies, suggesting investments in sectors like industrials, healthcare, and materials during the September-October weakness for potential gains.

Financials dominate pre- and post-election periods, while staples and utilities also perform well leading up to the election. Conversely, technology, communication services, and real estate consistently struggle with negative average returns during both periods. Bank of America highlights the importance of sector rotation and seasonal strategies for investors looking to capitalize on market trends.



Read more at Investing.com: Which S&P 500 sectors perform best around US Presidential elections? By Investing.com