Investors brace for election season: Can history comfort bulls?

Election year rally: Is it already priced in?

Investors who are hoping for a strong rally in the stock market leading up to the 2024 U.S. presidential election may be in for a disappointment. Historical data shows that the S&P 500 tends to see an average total return of around 10% in presidential election years. However, the benchmark index has already rallied significantly in the months leading up to the end of last year. This suggests that the pre-election gains may have already occurred, according to Saira Malik, chief investment officer at Nuveen. This raises concerns for equities coming into the beginning of 2024.