A chief investment strategist explains why making short-term bets ahead of the election is a risky strategy
- A Charles Schwab chief investment strategist explained why making short-term bets ahead of the election is a risky strategy.
- In the span of the last 30 election cycles, there have been a range of significant impacts on market performance that had “little-to-no relationship” with the incumbent party in the White House, the strategist, Liz Ann Sonders, noted.
- Considering the multitude of market outcomes in every election cycle, she said “the economy impacts elections more than elections impact the economy.”
- Investors looking for clear connections between the election and market performance cannot expect easy answers, she said.
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Betting on election outcomes is risky as history makes it clear that the relationship between politics and the stock market is varied and absent of consistency, according to a chief investment strategist at Charles Schwab, Liz Ann Sonders.