02 Sep Should I invest differently if Trump or Harris wins?

Q. So I know it looked like Trump would win when Biden was the candidate, but with Kamala Harris, I’m not so sure. Are there certain places that would be better to invest based on who wins?
— Investor

A. This is a question we’re sure is on every American investor’s mind.

Some investors are sure if the “other” party gets into office, their returns will suffer.

But if you look at investment returns, regardless of who wins, stocks have trended upwards over time, said Matt Rembish, a certified financial planner with OneDigital in Boonton.

“If you look at the S&P 500 performance since 1957, the compound annual growth rate of the fund during Republican presidencies is 10.2%, and 9.3% under Democrats,” he said. “There is not much of a difference.”

Factors like inflation, Gross Domestic Product, economic growth rates and unemployment levels are information that markets will react to, not the party that is in control of the Oval Office, Rembish said.

“It’s hard to know the best place to invest based on who becomes president because you must be correct three times,” he said. “You need to know which sector will be the best performer, when to put your money in, and when to pull it out. Extremely hard to do since no one has a crystal ball and would require a lot of luck.”

Let’s travel back in time with Rembish to February 1969. Let’s say you have $1 in your pocket which you want to invest in the S&P 500 until December 2023.

“If you only kept it invested during periods where a Democrat was in office, you would have $127,” he said. “If you only kept it invested during Republican presidencies, you would have $19.”

But if you kept it invested during the entire period — no matter who was in office — you would have $223 by the end of 2023, Rembish said.

“The market cares about policies, not politics. Over the long term, it’s best to stay consistent in your investment approach,” he said.

Email your questions to .

This story was originally published in September 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.