According to CNN, since 1945 the average annual rate of return of the US stock market during the rule of the Democrats was at 9.7%. At a time when power was president from Republicans - 6.7%. - For AMarkets materials.
Elle Kaplan, CEO and managing partner of LexION Capital Management, offers to pay attention to five points in the current pre-election time. The stock market is influenced by them.
1. Do not rely on timing ( "do not need a hard timing" - if literally). According to Morningstar, investors in an attempt to predict the exact time of execution of any event lose an average of 2.5% of its annual return.
2. Focus on the final event. Since 1926, stocks on average 3.3 years required to reach the peak of the bull after reaching the bottom of the bear.
3. It is important to remember that the presidential election - is not the only event formative trends. There are other economies except the US. There geopolitics. Currency war. Oil and other.
4. The global diversification. International markets can grow even if the US will fall. Allegorically speaking, it is important to just take off the blinders, closing the perspective and see the profitable assets in other countries.
5. The portfolio should reflect the investor's willingness to bear a certain level of risk. Do not make any sudden movements. The idea - to sell everything before the election - is flawed and carries a pre-programmed missed opportunities. In anticipation of a significant event is allokirovat capital assets with minimum risk.