April 28, 2024

The long-held belief that stock markets flourish during election years doesn’t stand up to scrutiny. Here’s why:

• 2000 Dot-Com Crash: A speculative bubble in tech, not election fervor, led to this market collapse.
• 2008 Financial Crisis: Deep financial system issues triggered a crash, unrelated to the presidential vote.
• 2020 Pandemic Downturn: A health crisis caused market turmoil, overshadowing the electoral process.

These points show that markets respond to a range of economic and global factors, rather than just the electoral cycle. It’s time to look beyond the election year myth and focus on the diverse drivers of market performance.